Simon Property Group, the King of Prussia Mall owner, and Brookfield Property Partners have agreed to purchase J.C. Penney for $1.75 billion in debt and equity, writes Maria Halkias for The Philadelphia Inquirer.

The two real estate companies are landlords to a total of 160 J.C. Penney stores.

The lifesaving deal for the troubled retailer going through Chapter 11 was announced on Wednesday, without many other details provided.

J.C. Penney filed for Chapter 11 in May. The company was looking for a buyer but as no prospects came forward, the threat of liquidation continued to become more serious.

With this new deal, J.C. Penney is being divided into an operating company that will be in charge of running the department stores and two real estate investment trusts. One REIT will own the stores while the other will own the retailer’s distribution centers. Meanwhile, the operating company will enter into lease agreements with the two REITs.

J.C. Penney has already closed around 150 stores and more closures will probably occur as the reorganization continues. The company entered bankruptcy with 846 stores.

Read more about the purchase at The Philadelphia Inquirer by clicking here.

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