On Wednesday, the landlord of Penney's department store, the owner of a major US shopping mall, Simon Real Estate (SPG.US), and Brookfield Property Partners (BPY.US) are about to finalize a $800 million deal with Penny's Department Store (JCPNQ.US) to help the company avoid complete liquidation and save about 70,000 jobs and 650 stores.

Kirkland & Ellis law firm attorney Joshua Sussberg said at the hearing that Simon and Brookfield will pay about 300 million US dollars in cash and bear 500 million US dollars in debt. Meanwhile, the hedge funds and private equity firms that funded Penny's bankruptcy will take ownership of some of the stores and retailer distribution centers. In exchange, these companies will cancel part of Penny's debts.

Being hit hard by the health incident, Penney filed for bankruptcy protection in May, when it had nearly 850 branches. Dozens of other retailers, including department store chains Neiman Marcus, Stage Stores, and Lord & Taylor, were also pushed to the brink of bankruptcy during the health incident, and some retailers have yet to find buyers. Lord & Taylor, the oldest department store operator in the US, is undergoing a complete liquidation. The household goods chain Pier 1 Imports (PIRRQ.US) was also forced to liquidate.

Analysts said that the most likely reason why mall owners saved Penny's was because they needed to prevent multiple vacant stores from appearing in the mall, which could trigger the so-called co-leasing clause, which allows other retailers in the mall to renegotiate their leases or vacate.