JCPenney has more than 100 stores facing uncertainty after $950M deal

JCPenney has more than 100 stores facing uncertainty after $950M deal

More than 100 JCPenney stores face an unsure future after a $950 million deal to promote the areas to a non-public fairness agency fell aside at the last minute.

Onyx Partners, a Boston-based funding agency, was set to amass 119 JCPenney stores from the Copper Property CTL Pass Through Trust, which was created during the retail chain’s chapter proceedings in 2020.

The deal fell by means of Monday — just (*100*) of a Friday deadline to shut the sale to Onyx, according to a Securities and Exchange Commission submitting by the particular belief.

The entity, which oversees administration of round 160 stores and 6 distribution facilities, was created to liquidate the real property under court-mandated deadlines.

A deliberate sale of more than 100 JCPenney areas collapsed earlier this week. jetcityimage – inventory.adobe.com

Under the phrases of JCPenney’s chapter settlement, the belief had a tough deadline of Jan. 30, 2026 to finish its liquidation of the retailer’s real property belongings.

In July, Onyx announced it had agreed to purchase 119 JCPenney retailer properties for $947 million in money — which got here out to roughly $8 million per retailer.

But the asking value drew pushback from belief traders, who pointed to earlier Copper Property sales that averaged a number of million {dollars} more per retailer.

Some questioned whether or not it could have been wiser to show the portfolio right into a real property funding belief — thus permitting Copper Property to maintain the stores and cost JCPenney lease in order to create a gentle earnings stream over the long run.

JCPenney continues working stores as a tenant even as the belief that owns the real property faces a liquidation deadline. Jeffrey Greenberg/Universal Images Group through Getty Images

But Copper Property executives have been pressed for time and cited the urgency of assembly the deadlines.

Nick Egelanian, president of retail development agency SiteWorks, told the news website Retail Dive that the exact cause the deal unraveled isn’t clear, however he outlined three probably explanations: lenders could have pulled again, the purchaser could have reconsidered the worth of the real property itself or considerations about JCPenney’s working performance could have spooked the purchaser.

Customers store at a JCPenney retailer in San Bruno, Calif., that closed in May. Getty Images

“It also could be a combination of these and other factors, but I am really speculating,” he told Retail Dive.

“It’s a really good question.”

JCPenney has just lately reported improved outcomes, including a return to profitability in the second quarter of fiscal yr 2025.

In January, JCPenney merged with SPARC Group to create successfully what’s its father or mother company, Catalyst Brands, whose portfolio contains model names such as Aéropostale, Brooks Brothers, Eddie Bauer, Lucky Brand and Nautica.

The Post has sought remark from Catalyst Brands, Onyx and Copper Property.

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