Iconic US retailer JC Penney rescued from collapse amid Covid hit          

Deal will allow 118-year-old retailer to emerge from bankruptcy before the key Christmas season

JC Penney filed for bankruptcy in May with nearly $5bn in debt but a deal to rescue it has been approved.

A US judge has approved a deal to rescue JC Penney from bankruptcy proceedings precipitated by the coronavirus pandemic, averting a liquidation that would have put the beleaguered department store chain out of business and jeopardised tens of thousands of jobs in the US.

The US Bankruptcy Court for the Southern District of Texas approved the deal, which will allow the 118-year-old retailer to emerge from bankruptcy before the upcoming key Christmas season, the company said.