UPDATE: A critical $947 million deal to sell 117 JCPenney stores is on the brink of collapse as Onyx Partners, Ltd. has failed to finalize the transaction by its scheduled deadline. This alarming development was confirmed in a regulatory filing made by the Copper Property CTL Pass Through Trust, which oversees the sale of properties following JCPenney’s 2020 bankruptcy.
The trust announced on December 22, 2023, that it has issued a termination notice to Onyx, stating that the sale “did not close” and will end on Friday unless the private equity firm completes the purchase. Initially slated to close in early September, this deal has faced numerous delays, raising concerns for creditors relying on the funds from the transaction.
The sale was intended to cover properties across 35 states, including 19 locations in Texas and another 19 in California. JCPenney, which operates nearly 650 stores nationwide, emerged from Chapter 11 bankruptcy in December 2020, with new ownership and a promise of stability. Earlier this year, the retailer confirmed the closure of seven additional stores, heightening worries about the viability of its remaining locations.
The implications of this stalled deal could be significant. While JCPenney assured that all stores involved in the sale would remain operational, the uncertainty now casts doubt on their future. The trust’s regulatory filing highlights the urgency of this situation, as creditors await the resolution of the sale.
As this story develops, industry experts and analysts will be closely monitoring the potential fallout. Will Onyx manage to salvage the deal, or will the collapse have far-reaching effects on JCPenney and its creditors? Shareholders and employees alike are left in suspense as the clock ticks down to Friday’s deadline.
Stay tuned for more updates as this situation unfolds.
