Wells Fargo has also agreed to give Penney $2 billion in revolving credit once the transaction is completed, leaving the retailer with $1 billion in cash, Sussberg said. Penney plans to seek approval from the bankruptcy judge for this rescue deal early next month.

Dozens of other retailers, including the department store chains Neiman Marcus, Stage Stores and Lord & Taylor, have filed for bankruptcy protection during the Covid-19 crisis. Some retailers have not found buyers to rescue them. Lord & Taylor, the oldest department store operator in the United States, and the home goods chain Pier 1 Imports are in the process of liquidating.

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Forever 21 reportedly started talking with landlords, and Simon and Brookfield specifically, about buying a stake in the retailer before it filed for bankruptcy last year. In September 2019, days before the company filed, Bloomberg reported that the talks with landlords had collapsed. That sent Forever 21 into Chapter 11 without a plan and without certainty of how it would exit bankruptcy. At the time, Bloomberg reported that the negotiations touched on ownership and leadership at the retailer as well as locations to close.

In Simon’s recent quarterly earnings report, Chairman and CEO David Simon noted that the firm has been successful in the past investing in retailers, namely Aeropostale and Authentic Brands. Simon noted “We would not have done Aero(postale) and we would not be attempting to do Forever 21 for the sole purpose of maintaining our rent. And that’s the biggest misnomer out there when I read various publications and analyst notes and media notes. We make these investments for the sole purpose of when we think there is a return on investment.”

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