July 31, 2025

JCPenney Sells Over 100 Stores in Texas

News Summary

JCPenney has sold more than 100 of its store properties in Texas to Onyx Partnerships for $947 million as part of a strategic restructuring plan. Scheduled to close soon, all sold stores will remain open, ensuring that shoppers continue to have access to their favorite retail locations. This deal comes after JCPenney’s previous bankruptcy and aims to revitalize the brand, with plans for significant investment by 2025. For Texas shoppers, this transition represents stability and the promise of an improved shopping experience.

Texas – JCPenney has recently entered into an agreement to sell over 100 of its store properties to private equity firm Onyx Partnerships for a total of $947 million in cash. This significant transaction is slated to close on September 8, 2023, marking a pivotal moment in the company’s ongoing effort to restructure its operations after facing difficulties in the retail market.

The sale involves properties primarily located in major metropolitan areas, including Houston, Austin, Miami, Los Angeles, and New York. Notably, 21 of the sold stores are situated in Texas, including three in North Texas.

The agreement gives Onyx Partnerships ownership of all JCPenney-leased stores, which encompass a mix of standalone locations and those within shopping malls. Under the terms of the deal, Onyx will have limited “termination rights” allowing them to make decisions on a property-by-property basis. Despite these changes, all 119 sold JCPenney stores are expected to remain operational after the sale’s completion.

This newest transaction is part of a broader strategic restructuring plan by JCPenney, which emerged from bankruptcy just five years ago. The marketing and sales process that led to this agreement was managed by the real estate firm Newmark, signifying an organized approach to revamping JCPenney’s business model. Back in 2020, Copper Property CTL Pass Through Trust acquired 160 JCPenney retail properties and six warehouse distribution centers during the bankruptcy process, out of which this current sale pertains to 119 of those properties.

Earlier in the year, JCPenney announced the closure of seven stores across the United States due to expiring lease agreements and market conditions, none of which were in Texas. This underlines the ongoing challenges that brick-and-mortar retailers face as consumer preferences shift and economic conditions evolve.

As part of its future strategy, JCPenney has indicated plans to invest more than $1 billion in revitalizing its brand by 2025. This initiative is expected to follow the merger with Sparc Group, resulting in the formation of Catalyst Brands. The goal of this investment is to enhance the shopping experience and introduce new product lines to reinvigorate sales and consumer interest at JCPenney stores across the nation.

Following the completion of the upcoming sale, the Copper Property Trust is projected to distribute net proceeds from this transaction to its certificate holders, providing a return on investment to those involved. However, it is important to note that while there will be a change in landlords with this sale, it will not impact the day-to-day operations of JCPenney stores or its staffing.

Currently, JCPenney operates approximately 650 stores nationwide, making it one of the largest department store chains in the United States. The company has been working diligently to adapt to a rapidly changing retail landscape, focusing on maintaining a solid presence in major markets and ensuring its long-term viability in a competitive commerce environment.

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Author: STAFF HERE GEORGETOWN

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