The fate of 119 JCPenney stores hangs in the balance as a crucial deadline approaches. Will these stores find a new owner, or will they face an uncertain future?
A recent regulatory filing has confirmed that a potential deal to sell over 100 JCPenney stores is now unlikely to go through. The Copper Property CTL Pass Through Trust, responsible for managing these assets, revealed on December 22nd that the previously announced sale with Onyx Partners, Ltd. had not materialized.
The trust issued a notice to Onyx, stating that if the transaction wasn't completed by December 26th, the agreement would terminate. But why did this deal fall through, and what does it mean for the stores involved?
As of now, the reasons behind the deal's collapse remain unknown. JCPenney has not provided any further information, leaving the future of these stores shrouded in uncertainty.
But here's where it gets controversial...
The proposed sale was a result of JCPenney's 2020 bankruptcy. In July 2025, the trust announced that Onyx would acquire 119 stores for a substantial $947 million. The deal was initially expected to close in September 2025, but delays persisted.
Newmark and Hilco Real Estate, the property management companies, had been actively seeking buyers for these locations. In a press release on July 25th, the trust stated that Onyx had completed its due diligence and that the deposit under the agreement was non-refundable. So, what changed between then and now?
JCPenney currently operates around 650 stores and was one of the largest retailers to file for Chapter 11 bankruptcy protection. Following the bankruptcy, the trust took control of approximately 160 JCPenney locations and six distribution centers. Simon Property Group and Brookfield Asset Management Inc. stepped in to manage the remaining operations.
The proceeds from the sale were intended to benefit JCPenney's creditors. After closing costs, it was estimated that between $928 million and $932 million would be distributed. However, with the deal now in jeopardy, the financial implications are unclear.
JCPenney's retail portfolio includes an impressive 121 properties, spanning 16.05 million square feet of retail space across 35 states. Texas and California are home to the largest concentrations of these stores, with 21 and 19 locations, respectively.
As we await further updates, the future of these stores remains uncertain. Will they find a new owner, or will they face closure? Only time will tell. And this is the part most people miss: the impact on the local communities and employees associated with these stores.
What are your thoughts on this situation? Do you think the stores will find a buyer, or is closure inevitable? Share your insights and opinions in the comments below!
