UPDATE: A critical $947 million deal to sell 117 JCPenney stores is in jeopardy after Onyx Partners, Ltd. missed a crucial deadline for completion. The news, revealed in a regulatory filing on December 22, 2023, indicates that the transaction, which was expected to provide financial relief to JCPenney creditors, has stalled, prompting the Copper Property CTL Pass Through Trust to issue a termination notice.
Originally announced in July, this all-cash acquisition would have seen Onyx secure over 100 JCPenney properties, a move anticipated to stabilize the retailer after its emergence from Chapter 11 bankruptcy in December 2020. The deal, initially slated to close in early September, faced multiple delays. Now, the trust warns that unless Onyx completes the transaction by Friday, the agreement will be void.
The fate of the JCPenney locations involved in the sale remains uncertain. The stores span 35 states and include 19 locations in Texas and 19 in California. JCPenney previously assured that all stores slated for sale would continue operations, but the potential collapse of this deal raises concerns for employees and communities reliant on these retail spaces.
As JCPenney navigates these turbulent waters, it has already confirmed the closure of seven stores earlier this year. The outcome of this stalled sale is crucial not only for the company’s financial health but also for the livelihoods of those associated with its stores.
Watch for updates as this situation develops. The urgency of the impending deadline could have significant repercussions for both JCPenney and its creditors. The retail giant, which operates nearly 650 store locations across the U.S., is at a critical juncture that could define its post-bankruptcy trajectory.
