JCPenney Loses $950M Rescue Deal—120 Stores Across 35 States Doomed

On December 26, 2025, Copper Property CTL Pass Through Trust terminated a $947 million sale of 119 JCPenney stores to Onyx Partners, affecting 15.5 million square feet.
The cancellation prompted lawsuits over deposits and documentation as Copper Property CTL Pass Through Trust sought $5 million and Onyx alleged missing tenant records.
All properties operate under triple-net leases, with tenant-paid taxes, insurance, and maintenance supporting predictable cash flows.
Catalyst Brands, JCPenney’s parent, said store operations would continue as ownership questions persisted across Texas, California, and Sunbelt markets.
The closing, first set for September 2025, moved to December, and the valuation was about $8 million per store.
With a January 30, 2026 liquidation deadline, Copper is weighing portfolio or single-asset sales as creditor distributions are uncertain.