UPDATE: A crucial $947 million deal to sell 117 JCPenney stores is on the brink of collapse after Onyx Partners, Ltd. failed to finalize the transaction by the deadline. This alarming development was confirmed in a regulatory filing submitted on December 22, 2023.
The deal, initially announced in July, involved the acquisition of over 100 JCPenney properties in an all-cash transaction from the Copper Property CTL Pass Through Trust, a trust established by the retailer’s creditors following its 2020 bankruptcy. Authorities reported that the trust has issued a termination notice to Onyx, stating that the agreement will be officially voided on Friday unless the private equity firm completes the purchase.
The transaction was originally slated to close in early September but has faced multiple delays. The funds from this sale were intended to be directed to JCPenney’s creditors, raising serious concerns about the retailer’s financial stability.
With nearly 650 store locations across the United States, JCPenney emerged from Chapter 11 bankruptcy in December 2020. Earlier this year, the company confirmed plans to close seven stores nationwide. While JCPenney assured that all the stores included in this sale would remain operational, the uncertainty surrounding this deal raises questions about the future of those locations.
The stores affected by this sale span 35 states and Puerto Rico, with significant concentrations in Texas and California, each having 19 locations. If the deal ultimately falls through, the implications could reverberate throughout the retail sector, potentially impacting jobs and local economies.
As the clock ticks down to the termination deadline, stakeholders and employees await further updates. The outcome of this deal could significantly affect JCPenney’s operational strategy and financial health in the coming months.
Stay tuned for further updates on this developing story.
