At least 119 JCPenney stores across the U.S. are set to change ownership in a major $947 million deal announced last week.
The agreement comes five years after the retailer filed for Chapter 11 bankruptcy at the height of the COVID-19 pandemic. As part of its restructuring, the department store chain transferred ownership of 160 store properties and six distribution centers to a liquidating trust established on behalf of its secured lenders.
Copper Property CTL Pass Through Trust announced last Friday that it is selling 119 operating JCPenney stores across 35 states in an all-cash transaction to an affiliate of Boston-based private equity firm Onyx Partners Ltd.
The deal is expected to close by Sep. 8.
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“The Buyer has now completed its due diligence, and its deposit under the Agreement is non-refundable,” the trust said in a press release on July 25.
JCPenney told FOX Business Thursday that all the stores involved in the sale will remain open and operational.
“The real estate transaction announced yesterday represents a change in landlord but does not impact JCPenney store operations,” the company said. “These 119 JCPenney stores will continue to operate and serve our loyal customers and communities.”
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Proceeds from the sale will be distributed to holders of the Trust’s certificates — primarily former creditors of JCPenney. Copper Property Trust Principal Financial Officer Larry Finger said during a July 28 investor call that anywhere between $928 million and $932 million will be distributed after closing costs.
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The department store chain, which now operates about 650 locations, was among the largest retailers to file for Chapter 11 during the pandemic. It closed nearly one-third of its 846 stores during its bankruptcy restructuring.
In May, JCPenney shuttered seven additional locations, according to Fox 4 Dallas. At the time, a spokesperson told the local station, “We look forward to continuing to serve our customers at our nearly 650 store locations across the country and online at jcpenney.com.”
CEO Marc Rosen told FOX Business in 2023 that the company was investing over $1 billion to reposition itself as a value-focused alternative to pricier department stores in order to boost foot traffic.
Onyx Partners did not respond to a request for comment from FOX Business.
FOX Business’ Daniella Genovese contributed to this report.
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