UPDATE: A critical $947 million deal to sell 117 JCPenney stores is on the verge of collapse. This alarming development comes as Boston-based private equity firm Onyx Partners, Ltd. has failed to finalize the transaction by the established deadline, according to a regulatory filing submitted on December 22, 2023.
Initially announced in July, the deal was set to transfer more than 100 JCPenney properties in an all-cash transaction from the Copper Property CTL Pass Through Trust, established by the retailer’s lenders following its bankruptcy in 2020. However, the trust revealed that the sale “did not close,” and it has issued a termination notice to Onyx, stipulating that the agreement will end on Friday unless the firm completes the purchase.
The transaction, which was originally scheduled to close in early September, has faced numerous delays. Funds from this sale were intended to aid JCPenney creditors, making the stakes even higher for all parties involved.
JCPenney, which operates nearly 650 stores nationwide, emerged from Chapter 11 bankruptcy in December 2020 under new ownership. Earlier this year, the company confirmed plans to close seven additional stores across the U.S. When the deal was first publicized, JCPenney assured that all stores included in the sale would remain operational.
The locations part of this sale span across 35 states and Puerto Rico, with significant concentrations of stores—19 each—in Texas and California. The uncertainty surrounding the deal raises questions about the future of these locations and their employees.
As developments unfold, stakeholders are watching closely to see if Onyx will meet the impending deadline or if the deal will indeed fall through, potentially impacting hundreds of employees and local economies tied to these JCPenney stores.
Stay tuned for updates on this developing situation, as the implications of this deal—or its failure—could reverberate across the retail landscape.
