JCPenney Finalizes $947 Million Sale of 119 Stores to Onyx Partners
JCPenney is making headlines once again, this time with the sale of 119 of its store locations in a landmark $947 million all-cash deal to a Boston-based private equity firm. The buyer, an affiliate of Onyx Partners, Ltd., is expected to finalize the transaction by September 8, according to a press release issued by Copper Property CTL Pass Through Trust on July 25.
The sale marks a significant chapter in JCPenney’s post-bankruptcy recovery as the retailer continues to streamline operations and repay creditors. The stores being sold are structured under net leases, meaning JCPenney remains responsible for rent and operating costs, ensuring continued operations despite the change in ownership.
Key Highlights of jcpenney stores sale:
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119 JCPenney stores sold to Onyx Partners for $947 million.
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The transaction is all-cash and expected to close on September 8, 2025.
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Copper Property CTL Trust, created after JCPenney’s 2020 bankruptcy, managed the deal.
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The buyer’s deposit is now non-refundable, confirming full due diligence.
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Proceeds will be used to repay JCPenney creditors.
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Net-lease terms mean JCPenney continues to operate these stores.
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Final distribution to creditors estimated between $928M and $932M after costs.
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JCPenney currently operates about 650 locations across the U.S.
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Store operations are managed by Simon Property Group and Brookfield Asset Management.
A Look Back: From Bankruptcy to Big Sale
In May 2020, JCPenney filed for Chapter 11 bankruptcy, joining the ranks of major retailers impacted by shifting consumer habits and pandemic-related losses. As part of the bankruptcy restructuring, Copper Property CTL Trust was formed to handle the real estate assets of the retailer — including more than 160 store properties and six distribution centers.
While Simon Property Group and Brookfield Asset Management assumed control of JCPenney’s retail operations, Copper Trust was tasked with monetizing the property portfolio.
This recent sale is the largest since the trust’s formation, with major real estate firms Newmark and Hilco Real Estate assisting in marketing the properties.
What It Means for JCPenney’s Future
Despite the ownership change, the sale is structured under net leases, allowing JCPenney to maintain operations at the sold locations. Customers are unlikely to notice any difference in-store. However, from a financial standpoint, the nearly $1 billion deal helps pay down lingering debts from the retailer’s bankruptcy period.
According to Larry Finger, principal financial officer of the trust, the net proceeds of $928M to $932M (after closing costs) will be disbursed to creditors, marking a major milestone in the recovery process.