JCPenney, facing bankruptcy and closures, struck a $947 million deal in July 2025 to transfer ownership of 119 store locations to private equity firm Onyx Partners Ltd. The deal, executed through Copper Property CTL Pass-Through Trust, faced delays and ultimately failed to close by December 2025.

The failed deal leaves 119 JCPenney locations in limbo, with the fate of these stores uncertain. The attempted sale stemmed from JCPenney’s Chapter 11 bankruptcy filing in 2020, a result of declining profitability and the impact of the COVID-19 pandemic.

Following its bankruptcy, JCPenney was acquired by Simon Property Group and Brookfield Asset Management. Copper Property was formed to manage 160 retail properties, with plans to sell these assets. JCPenney had previously closed over 200 stores and announced additional closures in 2025.

Analysts attribute JCPenney’s decline to a failed rebranding effort in 2011 and a shift in pricing strategy that alienated customers. The rise of e-commerce and changing consumer behavior have further impacted traditional retail, leading to increased store closures across the country. US e-commerce spending is projected to surpass $2.5 trillion by 2030.

In 2024, US online sales accounted for 22.3% of global e-commerce spending, reaching $1.34 trillion. Retailers announced 67% more store closures in 2025 than the previous year, reflecting the ongoing challenges faced by brick-and-mortar stores in an evolving retail landscape.

Read more at Yahoo Finance: JCPenney reveals an unexpected update about the future of 119 stores