In the 1970s, it seemed like JCPenney would rule retail forever. At its peak, the department store chain had more than 2,000 stores. Malls continue to close, and retail habits shift from in-store to online shopping. The future of stores like JCPenney seems uncertain. Though the company filed for Chapter 11 bankruptcy protection in 2020, it avoided shutting down completely by closing 200 stores. Today, there are approximately 650 JCPenney locations. The company recently announced the sale of 119 locations for a staggering $947 million to a private equity firm.
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It’s Unclear What Will Happen To The JCPenney Locations
According to CoStar, Boston-based Onyx plans to purchase the properties in an all-cash transaction.
“The transaction is scheduled to close on or before September 8, 2025, subject to customary real estate closing conditions. The Trust intends to distribute the net proceeds to Certificateholders in accordance with the terms of the Trust Agreement following the consummation of the sale,” according to a release.
“The Agreement provides certain limited termination rights on a property-by-property basis in connection with purchase rights in favor of ground lessors or purchase rights pursuant to reciprocal easement agreements, certain title defects, casualty events, or condemnation proceedings,” the release added. “Due to the various conditions to closing, the Trust cannot make any assurances that the disposition of the Properties is certain.”
JCPenney listed the locations for sale earlier this year. According to JCPenney, they offered 121 stores in prime locations.
“The portfolio’s assets are surrounded by densely populated, affluent residential communities with an average population of 104,900 and an average household income of $111,900 within a three-mile radius. The long-term redevelopment or repositioning potential is supported by the portfolio’s average site size of 8.32 acres and average store size of 132,700 square feet, which presents future ownership with significant excess land available for increased densification,” JCPenney boasted. “Six of the assets provide for a landlord termination right, allowing for the buyer to terminate the JCPenney lease with 24 months’ notice.”
It remains to be seen if this marks a bright future or the end of JCPenney as many know it.
This story’s featured image is by Justin Sullivan/Getty Images.
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