950 million dollar deal for JCPenney store portfolio falls through

A planned deal to sell 119 JCPenney locations to a private equity firm has fallen through. The 950 million dollar deal was initially introduced when the retail chain entered bankruptcy proceedings in 2020.

Investment firm Onyx Partners had stepped up to acquire the stores from Copper Property CTL Pass Through Trust. The trust had been formed at the time of the bankruptcy, and had been given until January 30, 2026 to complete the liquidation of JCPenney’s real estate assets.

According to a Securities and Exchange Commission filing, the deal has now fallen through ahead of a December 26 deadline. The exact cause for its termination was not disclosed, however, various media reports have previously pointed to delays and investor pushback over the selling price of individual properties.

While the future of the involved stores had initially been uncertain, a spokesperson for JCPenney’s parent company, Catalyst Brands, confirmed to the New York Post that the locations will remain in operation.

“Any potential real estate transaction between Copper Property and Onyx Partners Ltd. would purely represent a transfer between parties as property owner and landlord to JCPenney,” the statement read. “It does not impact JCPenney store locations or operations. These 119 JCPenney stores will continue to operate and serve our loyal customers and communities.”