What's Happening?
Onyx Partners Ltd. has been working to finalize the purchase of 117 JCPenney stores for $935 million, a deal initially announced in July 2025. The transaction has faced multiple delays, leading to speculation about its potential collapse. The stores in question are currently owned by the Copper Property CTL Pass Through Trust, which acquired them following JCPenney's bankruptcy in May 2020 and subsequent purchase by Simon Property Group and Brookfield Asset Management in December 2020. The original closing date was set for September 8, 2025, but has been postponed several times. On December 22, the Trust filed a form with the Securities and Exchange Commission indicating that the agreement would terminate if the transaction did not close by December 26,
2025. Despite these challenges, Onyx Partners remains committed to completing the purchase, with Anton Melchionda, Founder and Principal/Partner at Onyx, stating that they are addressing outstanding seller deliverables, including tenant-related documentation.
Why It's Important?
The acquisition of these JCPenney stores is significant as it represents a major investment in the retail sector, which has been undergoing substantial changes due to shifts in consumer behavior and the impact of e-commerce. The successful completion of this deal could stabilize the operations of these stores and potentially preserve jobs, while also impacting the commercial real estate market. For Onyx Partners, this acquisition could enhance their portfolio and influence their market position. However, the delays and potential collapse of the deal highlight the challenges faced in large-scale retail transactions, particularly in a post-pandemic economy where retail dynamics are rapidly evolving.
What's Next?
If Onyx Partners successfully addresses the outstanding issues and closes the transaction, the focus will likely shift to the integration and management of the acquired stores. This could involve strategic decisions regarding store operations, staffing, and potential rebranding efforts. Conversely, if the deal falls through, it could lead to further uncertainty for the stores and their employees, as well as potential legal and financial implications for both Onyx Partners and the Copper Property CTL Pass Through Trust. Stakeholders, including employees, investors, and local communities, will be closely monitoring the situation for any developments.
