Over one hundred JCPenney retail locations changed hands as part of a $1 billion transaction following the company's bankruptcy.
JCPenney Sells 119 Stores to Onyx Partners for $947 Million
JCPenney, the American department store chain, has announced the sale of 119 of its stores across 35 states to Onyx Partners Ltd. for a total of $947 million. The all-cash transaction, which is expected to close by September 8, 2025, will not impact the store operations.
The stores involved in the sale are predominantly located in populous states such as California (19 stores) and Texas (21 stores), as well as areas in the Northeast. The properties were held under the Copper Property CTL Pass Through Trust, created during JCPenney's bankruptcy reorganization for creditor benefit.
Despite the change in landlord, all 119 stores will remain operational and open to customers under JCPenney's continued retail operations. The sale is part of JCPenney’s ongoing financial restructuring following its 2020 bankruptcy, intended to help payout creditors and stabilize the business without closing these locations immediately.
The sale proceeds, estimated between $928 million and $932 million after closing costs, will be distributed to JCPenney's creditors. JCPenney CEO Marc Rosen is discussing a $1 billion investment to upgrade stores in an effort to reposition the company as a value-focused alternative to pricier department stores, boosting foot traffic.
It's important to note that JCPenney closed nearly one-third of its 846 stores during its bankruptcy restructuring. The department store chain, which now operates about 650 locations, was among the largest retailers to file for Chapter 11 during the pandemic.
This sale is part of a broader trend in the retail sector, with store closures and real estate divestments being common post-pandemic. Onyx Partners, the Boston-based private equity firm that will acquire the stores, did not respond to a request for comment from FOX Business.
In May, JCPenney shuttered seven additional locations, bringing the total number of store closures to 126 since the start of the pandemic. The company has been working to transform its business model to adapt to the changing retail landscape, focusing on its e-commerce platform and value-oriented offerings.
FOX Business' Daniella Genovese contributed to this report.
- The sale of 119 JCPenney stores to Onyx Partners for $947 million is part of the department store chain's ongoing financial restructuring, with the sale proceeds to be distributed to creditors to help pay them off and stabilize the business.
- JCPenney's CEO, Marc Rosen, is discussing a $1 billion investment to upgrade stores, with the aim of repositioning the company as a value-focused alternative to pricier department stores and boosting foot traffic.
- The retail sector has seen a significant trend of store closures and real estate divestments post-pandemic, with JCPenney's sale to Onyx Partners being an example of this broader trend.
