Brace yourself for a major shakeup in the retail landscape as JCPenney unloads a significant chunk of its portfolio.
According to USA Today, a Boston-based private equity firm, through an affiliate of Onyx Partners, Ltd., has struck a deal to buy 119 JCPenney stores for $947 million in an all-cash transaction announced on July 25, 2025, with a planned closing date of September 8, 2025.
Let’s rewind to 2020, when JCPenney, once a titan of American retail, filed for Chapter 11 bankruptcy protection amid the economic fallout of the COVID-19 pandemic. During that turbulent period, the company shuttered over 200 stores across the U.S. This bankruptcy was one of the largest retail collapses of its time.
Following the bankruptcy, JCPenney’s lenders formed Copper Property CTL Pass Through Trust to manage a portfolio of about 160 store locations and six distribution centers. Simon Property Group and Brookfield Asset Management Inc. stepped in to take over operations and the remaining stores. Today, JCPenney operates roughly 650 locations nationwide.
Copper Property Trust, tasked with liquidating assets to repay creditors, hired property management firm Newmark and Hilco Real Estate to find buyers for the stores. Their efforts bore fruit with this latest deal involving the 119 net-lease properties, where tenants cover rent and operating costs. These 119 stores, all currently operational, are part of a broader retail portfolio described by Newmark as spanning 121 properties and 16.05 million square feet across 35 states, with heavy concentrations in Texas (21 stores) and California (19 stores).
The $947 million sale to Onyx Partners’ affiliate marks a significant step in JCPenney’s ongoing reorganization. After closing costs, "between $928 million and $932 million" will be distributed to creditors who have waited years for repayment. This cash infusion is a rare win for creditors in a retail bankruptcy saga.
Copper Property Trust noted in a July 25, 2025, release that the buyer completed due diligence and made a non-refundable deposit. This signals strong confidence in the deal’s closure by September 8, 2025.
Earlier in 2025, two other JCPenney properties—one in Florida and one in Pennsylvania—were sold to the Simon and Brookfield group for $21 million, according to a Securities and Exchange Commission filing. That smaller transaction paved the way for this larger portfolio sale.
Despite the sale of 119 stores, JCPenney continues to operate hundreds of locations, though its footprint has undeniably shrunk since 2020. The retailer also announced seven additional store closures in February 2025, finalized by May of that year.
For investors and financially savvy readers, this deal raises questions about the future of brick-and-mortar retail in a post-pandemic world. Is JCPenney streamlining for survival or signaling deeper distress? The sale of net-lease stores suggests a focus on shedding costly liabilities.
From a wealth-building perspective, the retail sector remains a risky but potentially lucrative play. Private equity firms like Onyx Partners often acquire distressed assets at a discount, betting on turnarounds or redevelopment. Onyx, however, did not respond to requests for comment on its strategy.
For JCPenney’s creditors, the nearly $930 million payout is a long-overdue lifeline, though it’s unlikely to fully cover losses from the 2020 collapse. Still, it’s a reminder that patience in distressed asset plays can yield returns, even if delayed.
Looking ahead, keep an eye on how JCPenney repositions itself with a leaner portfolio. For those interested in retail or real estate investing, tracking firms like Onyx Partners could reveal opportunities in undervalued properties. Consider diversifying into real estate investment trusts (REITs) for exposure without the direct risk.
Ultimately, this $947 million deal underscores a hard truth: retail giants must adapt or die in today’s economy. JCPenney’s journey through bankruptcy, closures, and now asset sales is a case study in resilience—and a cautionary tale for investors. Stay frugal, stay informed, and always question whether government policies or monetary distortions are quietly reshaping the market beneath these headlines.