119 JCPenney stores sold in nearly $1 billion deal
Five years after JCPenney filed for bankruptcy, 119 of its store properties have been sold to a Boston-based private equity firm for $947 million, according to a July 25 announcement by Copper Property CTL Pass Through Trust.
The all-cash deal, with an affiliate of Onyx Partners, Ltd., is expected to close on September 8. The properties involved are net-lease stores, meaning tenants pay rent and operating expenses, News.Az reports, citing foreign media.
Copper Property Trust, which was created by JCPenney’s lenders during the retailer’s 2020 bankruptcy restructuring, had been working with Newmark and Hilco Real Estate to market the properties. “The Buyer has now completed its due diligence, and its deposit under the Agreement is non-refundable,” the trust said.
The sale marks a significant step in the liquidation of properties managed by Copper Property. Following JCPenney’s bankruptcy, the trust assumed control of approximately 160 store locations and six distribution centers. Simon Property Group and Brookfield Asset Management, Inc. took over the company’s operations and remaining stores, which currently total around 650 nationwide.
Proceeds from the transaction will go to JCPenney’s creditors. After closing costs, between $928 million and $932 million will be distributed, said Larry Finger, the trust’s principal financial officer, during a July 28 conference call.
JCPenney was one of the largest U.S. retailers to file for Chapter 11 bankruptcy in 2020 amid declining sales and the economic impact of the COVID-19 pandemic. The sale of these properties is part of the ongoing efforts to pay down creditor claims and further stabilize the company’s future.
The full list of sold locations was not immediately released by Copper Property Trust.
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