Private equity firm Onyx Partners Ltd. will acquire 119 JCPenney stores across 35 states for $947 million in cash, Copper Property CTL Pass Through Trust announced.
The transaction, set to close by September 8, includes more than 20 stores in Texas, with three in North Texas. The deal follows JCPenney’s 2020 Chapter 11 bankruptcy filing during the COVID-19 pandemic, when the retailer transferred 160 store properties and six distribution centers to the trust for liquidation on behalf of secured lenders.
The sale, facilitated by real estate firm Newmark after an “exhaustive marketing and sale process,” transfers ownership of all leased JCPenney stores, including those in malls, to Onyx, with limited termination rights for individual properties.
JCPenney, which operates about 650 stores nationwide, said that the 119 stores will remain open.
“The real estate transaction announced yesterday represents a change in landlord but does not impact JCPenney store operations,” the company told FOX Business. “These 119 JCPenney stores will continue to operate and serve our loyal customers and communities.”
Copper Property Trust Principal Financial Officer Larry Finger said during a July 28 investor call that $928 million to $932 million will be distributed to the trust’s certificate holders, primarily former JCPenney creditors, after closing costs.
The trust noted, “The Buyer has now completed its due diligence, and its deposit under the Agreement is non-refundable.”
The department store chain, which closed nearly one-third of its 846 stores during its bankruptcy restructuring, shuttered seven additional locations in May due to expiring leases and market conditions, none of which were in Texas, according to Fox Business.
In 2023, CEO Marc Rosen told FOX Business the company was investing over $1 billion to reposition itself as a value-driven retailer, aiming to attract cost-conscious shoppers.
The sale marks a significant step in JCPenney’s post-bankruptcy recovery, though future plans for the acquired stores under Onyx’s ownership remain unclear.