UPDATE: A crucial $947 million deal to sell 117 JCPenney stores is on the brink of collapse, as Boston-based private equity firm Onyx Partners, Ltd. failed to meet a critical deadline for transaction completion. This shocking development was revealed in a regulatory filing on December 22, 2023, underscoring the potential fallout for JCPenney and its creditors.
The sale, initially announced in July, involved Onyx acquiring over 100 JCPenney properties in an all-cash transaction from Copper Property CTL Pass Through Trust, a trust formed by the retailer’s lenders following its 2020 bankruptcy. The trust disclosed that the sale “did not close” and issued a termination notice to Onyx, indicating the agreement will end on Friday unless the firm acts swiftly to finalize the purchase.
This deal was originally slated to close in early September but faced multiple delays, causing growing concern among stakeholders. Funds from this transaction were set to benefit JCPenney creditors, raising the stakes for all involved. JCPenney, which operates nearly 650 store locations nationwide, emerged from Chapter 11 bankruptcy in December 2020, and this sale was seen as a vital step in stabilizing its finances.
The JCPenney locations under this sale stretch across 35 states and Puerto Rico, with a significant concentration of 19 stores each in Texas and California. It remains uncertain how this failed deal will affect the future of these stores, which JCPenney had pledged would remain operational post-sale.
Earlier this year, JCPenney confirmed it was closing seven stores across the U.S., adding to the urgency of this situation. The potential collapse of this deal not only threatens the stability of the affected stores but also raises questions about the retailer’s ongoing recovery strategy.
As this situation develops, all eyes will be on Onyx Partners to see if they can salvage the deal before the Friday deadline. The implications of this transaction extend beyond just JCPenney, affecting creditors and employees alike.
Stay tuned for updates on this urgent situation as we monitor the latest developments.
