JCPenney reveals an unexpected update about the future of 119 stores

Once a promenade staple and a go-to section store for generations of families since 1902, JCPenney has endured turbulent years marked by bankruptcy, wide store closures, and restructuring efforts. Now, arsenic the retailer continues its agelong roadworthy to recovery, different large setback has emerged.

In July 2025, JCPenney entered into a $947 cardinal all-cash woody with backstage equity steadfast Onyx Partners Ltd., agreeing to transportation the ownership of 119 store locations. The woody was executed done Copper Property CTL Pass-Through Trust, the entity created during JCPenney's bankruptcy to clasp and dispose of its existent property assets.

Copper Property disclosed that the amendment became effectual connected July 23 and was non-refundable, thereby guaranteeing the transaction, according to the trust's property release. Once completed, the spot planned to administer the proceeds to investors.

Under the presumption of the deal, the properties were taxable to a triple-net maestro lease, nether which JCPenney remains liable for each operating costs, including spot taxes, insurance, and maintenance. The lease besides included constricted termination rights for idiosyncratic locations successful circumstantial circumstances, specified arsenic spot harm or condemnation proceedings.

Despite these arrangements, the spot cautioned that the transaction was contingent connected gathering respective closing conditions and could not beryllium guaranteed. At the time, each 119 JCPenney stores remained unfastened and operational.

The woody was initially expected to adjacent connected September 8, with the spot obligated to merchantability each properties by January 2026. However, repeated delays yet led to an unexpected outcome.

Months later, Copper Property revealed that the astir $1 cardinal statement had failed to close. In a Form 8-K filing dated December 22, the spot issued a announcement to Onyx Partners confirming that the statement would beryllium terminated if the purchaser did not implicit the transaction by December 26, 2025.

The filing does not specify what would hap to the 119 stores, and JCPenney has yet to contented a nationalist connection addressing the failed woody oregon the adjacent steps.

This attempted merchantability dates backmost to JCPenney's Chapter 11 bankruptcy filing successful May 2020. While the institution cited the COVID-19 pandemic arsenic a cardinal factor, it had not been profitable for astir a decennary prior.

As portion of its restructuring, CPenney secured $450 cardinal successful debtor-in-possession financing to proceed operating portion reorganizing its business.

The retailer was yet acquired by Simon Property Group (SPG) and Brookfield Asset Management (BAM) for $1.75 billion, transferring ownership of its retail and operating assets.

Copper Property was created during this process to presume ownership of 160 retail properties and six warehouses. Managed by an affiliate of Hilco Real Estate LLC., the spot is liable for owning, leasing, and selling those assets.

At the clip of its bankruptcy filing, JCPenney closed implicit 200 stores nationwide. Earlier this year, the retailer confirmed plans to shutter 7 further locations.

Newmark antecedently owned 121 JCPenney store properties crossed 35 states. In aboriginal 2025, it sold two of those properties, 1 successful Florida and 1 successful Pennsylvania, to the Simon Property Group and Brookfield Asset Management.

• Texas: 21

• California: 19

• Florida: 6

• Michigan: 6

• Illinois: 5

• Ohio: 4

• Arizona: 4

• New Jersey: 4

• Connecticut: 3

• Nevada: 3

• New York: 3

• Oklahoma: 3

• Pennsylvania: 3

• Washington: 3

• Arkansas: 2

• Colorado: 2

• Kentucky: 2

• Maryland: 2

• Missouri: 2

• New Mexico: 2

• Puerto Rico: 2

• Tennessee: 2

• Virginia: 2

• Georgia: 1

• Iowa: 1

• Idaho: 1

• Indiana: 1

• Kansas: 1

• Louisiana: 1

• Massachusetts: 1

• Minnesota: 1

• Mississippi: 1

• North Carolina: 1

• New Hampshire: 1

• Oregon: 1

• Wyoming: 1

Analysts property JCPenney's diminution to a large rebranding effort successful 2011 nether the then-newly appointed CEO, Ron Johnson, who introduced a caller logo and redesigned stores to beforehand a much modern section store concept.

At the aforesaid time, JCPenney abandoned its long-standing promotional pricing strategy, replacing predominant income and coupons with mundane debased pricing. It besides reduced its private-label offerings to absorption connected nationalist brands.

The alteration failed to resonate with its halfway customers and alternatively created a cognition of higher prices.

"For the JCPenney shopper, the marque acquisition wasn't conscionable astir the last terms paid," said Marketing Expert Roy Harmon. "It was astir the intelligence thrill of the hunt. Customers loved the consciousness of 'winning' by stacking coupons and catching a large sale. By removing the discounts, Johnson removed a cardinal root of perceived worth and delight. Customers, confused and alienated by the caller approach, fled successful droves."

More Store Closures:

• 62-year-old retail concatenation is softly closing stores crossed the US

• Popular women’s manner marque closes dozens of stores nationwide

• 124-year-old retail concatenation announces uncommon store closure

As ft postulation and income declined and competitors got ahead, JCPenney's indebtedness continued to mount.

"The JCPenney lawsuit illustrates the analyzable dynamics of branding successful the modern retail environment," said Attorney Schuyler Reidel. "While aspirations for revitalization are commendable, they indispensable beryllium grounded successful a heavy knowing of lawsuit expectations and marketplace realities to execute palmy outcomes."

The COVID-19 pandemic further added to JCPenney's challenges, disrupting its proviso concatenation and forcing impermanent store closures during an already uncertain time.

Traditional brick-and-mortar retail continues to shrink. Rising operating costs and the accelerated maturation of e-commerce person reshaped user behavior, leaving bare promenade storefronts and shuttered stand-alone locations crossed the country.

With 84.3% of Americans buying online, U.S. e-commerce spending reached $1.34 trillion in 2024 and is projected to surpass $2.5 trillion successful 2030, according to Capital One Shopping.

In 2024, U.S. online income accounted for 22.3% of planetary e-commerce spending, up astir 1.5% from the twelvemonth prior, and are expected to reach $1.47 trillion successful 2025.

Retailers announced 67% much store closures successful 2025 than the erstwhile year, according to CoreSight Research.

• Macy's: Plans to shutter around 150 underperforming stores by 2026 (Source: The Street)

• Inditex: Closed 132 stores successful 2025 (Source: Inditex)

• Claire's: Closed nearly 300 U.S. stores after filing for Chapter 11 bankruptcy in 2025 (Source: Delaware bankruptcy tribunal files)

• Victoria's Secret: Has shuttered 30 U.S. locations since the opening of 2025 (Source: Victoria's Secret)

Related: Why your favourite retail store is going retired of business

This communicative was primitively published by TheStreet connected Dec 27, 2025, wherever it archetypal appeared successful the Retail section. Add TheStreet arsenic a Preferred Source by clicking here.