UPDATE: A massive $947 million deal to sell 117 JCPenney stores is on the brink of collapse after Onyx Partners, Ltd., a Boston-based private equity firm, failed to finalize the transaction by the set deadline. This developing situation was detailed in a regulatory filing submitted on December 22, 2023.
The sale, first announced in July, was intended to transfer over 100 JCPenney properties in an all-cash deal from the Copper Property CTL Pass Through Trust. This trust was established by JCPenney’s lenders following the retailer’s bankruptcy in 2020. However, the trust has now issued a termination notice to Onyx, stating that the agreement will be void as of Friday unless the acquisition is completed.
Originally slated to close in early September, the deal has faced multiple delays, raising concerns among JCPenney creditors, who were relying on these funds to recover losses. The impact of this potential failure on the JCPenney stores involved remains uncertain, but it could affect their operational status.
JCPenney currently operates nearly 650 stores across the United States and had recently confirmed the closure of seven locations earlier this year. When the sale was first proposed, JCPenney assured that all stores included in the transaction would remain operational, but the recent developments cast doubt on this promise.
The affected stores span across 35 states and Puerto Rico, with significant concentrations in Texas and California, each with 19 locations.
As this situation unfolds, stakeholders are left anxiously awaiting further announcements. The urgency of this deal collapsing could have widespread ramifications for both JCPenney’s financial health and its employees, who depend on stable operations in a challenging retail environment.
Stay tuned for updates as this story develops and more information becomes available.
