News Summary

Onyx Partners Ltd., a Boston-based private equity firm, has announced its acquisition of 119 JCPenney stores for $947 million. The all-cash deal, set to close by September 8, 2025, aims to help JCPenney repay its creditors following its Chapter 11 bankruptcy filing in 2020. The stores span 16.05 million square feet across 35 states, with multiple locations in Michigan. This acquisition represents a significant strategic move in the retail sector as Onyx Partners seeks to capitalize on JCPenney’s portfolio amidst ongoing market changes.

TROY, Michigan – Onyx Partners Ltd., a private equity firm based in Boston, has announced its acquisition of 119 JCPenney stores for a total of $947 million. This all-cash sale, disclosed by the Copper Property CTL Pass Through Trust on July 25, is expected to close on or before September 8, 2025. The proceeds from this transaction are earmarked for repaying JCPenney’s creditors.

The sold stores comprise approximately 16.05 million square feet of retail space situated across 35 states, including six operational locations in Michigan: Oakland Mall in Troy, Lakeside Mall in Sterling Heights, Twelve Oaks Mall in Novi, Grand Traverse Mall in Traverse City, Rivertown Crossings in Grandville, and Waterside Marketplace in Chesterfield Township. Remaining JCPenney locations in Michigan include 23 outlets in cities such as Ann Arbor, Brighton, Burton, Dearborn, Flint, and Grand Rapids.

JCPenney’s financial turmoil traces back to its filing for Chapter 11 bankruptcy protection in May 2020, during which the company closed over 200 stores. Following this bankruptcy, the management of JCPenney was taken over by Simon Property Group and Brookfield Asset Management Inc., who also acquired two properties earlier this year in Florida and Pennsylvania for $21 million.

After settling closing costs, JCPenney’s principal financial officer, Larry Finger, indicated that they anticipate distributing approximately $928 million to $932 million to creditors from this latest sale. This process reflects ongoing adjustments as the retail landscape continues to evolve amid market changes and expiring lease agreements.

The upcoming store closures include an anticipated eight additional locations by the end of this year, which are attributed to similar reasons affecting JCPenney’s operational strategy. The company is currently managing around 650 stores nationwide, with a presence in nearly every state.

Onyx Partners’ latest acquisition marks a significant move in the retail sector, as the firm positions itself to capitalize on JCPenney’s extensive portfolio of retail properties. The deal’s timing and its impact on Michigan’s retail landscape remain to be seen, as stakeholders and the community watch closely for developments in the coming weeks leading up to the expected closing date.

With this acquisition, Onyx Partners aims to reinforce its presence in the retail market amid challenging conditions stemming from the pandemic and shifting consumer behaviors that have reshaped the shopping experience. As the retail giant continues to restructure and adapt to the new market realities, the sale is anticipated to provide JCPenney with necessary liquidity for strategic reinvestment and operation continuity.