Simon Property Group, owner of King of Prussia Mall and Montgomery Mall, along with Brookfield Property Partners are in talks with Authentic Brands Group to acquire J.C. Penney, writes Drew Hansen for the Philadelphia Business Journal.

The department store chain filed for Chapter 11 bankruptcy protection last month. However by buying the troubled retailer, these two which are among the nation’s largest mall owners, would ensure that one of their biggest tenants remains open.

Earlier this year, Simon, Brookfield, and Authentic joined forces to acquire the clothing chain Forever 21. The group also worked together on the Aeropostale acquisition four years ago.

J.C. Penney is currently in the process of formulating a business plan, that has to be completed by July 14. The company is considering creating two publicly traded companies. One would be a real estate investment trust owning store property and the other one would be the new operating company.

In an effort to cut costs, J.C. Penney recently announced it would be closing 154 stores, five of which are in Pennsylvania.

Read more about Simon Property Group’s plans at the Philadelphia Business Journal by clicking here.

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Top photo credit: Phillip Pessar JC Penney via photopin (license)