Onyx Partners renews $934M bid for 117 J.C. Penney store properties

Onyx Partners' Second Attempt at J.C. Penney's Store Portfolio

Onyx Partners, a private equity firm, is making a second run at J.C. Penney's remaining trust-owned store properties, this time offering roughly $934 million for 117 locations across 35 states. The bid works out to about $8 million per store, matching the per-property terms of the firm's earlier attempt. Financing is fully in place and the buyer is prepared to close on Sept. 25, an Onyx spokesperson said.

The new offer follows a failed agreement last year covering about 120 stores. That deal collapsed in December for reasons that have never been made public. The properties sit with the Copper Property CTL Pass Through Trust, an entity created during J.C. Penney's 2020 bankruptcy to manage — and eventually sell — the leases on 160 stores and six distribution centers. The trust has already sold more than 40 properties, and the 117 parcels Onyx wants are the last ones left, according to Copper Property documents.

As of press time, Onyx said it had received no response to its offer. Copper Property and its representatives did not respond to requests for comment. Catalyst Brands, which operates J.C. Penney, said the stores all run on long-term leases, so a change in property ownership would not alter how they operate. "Any potential transaction is merely a transfer of ownership of the physical stores and would not change the nature of our long-term leases," a Catalyst spokesperson said.

The bid arrives at a weak moment for the department store chain. J.C. Penney's first-quarter net sales fell nearly 5% year over year to $1.25 billion, and gross margin contracted, though net losses narrowed. Some analysts argue Catalyst's backing is giving the retailer time to fix its turnaround rather than representing a solution in itself.

What the $934 Million Bid Means for the Copper Property Trust and J.C. Penney

Why Onyx Is Coming Back for the Same Portfolio

Onyx's persistence is the most telling detail of the renewed bid. An $8 million-per-store price for properties with long-term tenants and leases in place gives the firm a defined income stream from day one, plus optionality on what those department store boxes could become later. The collapse of last year's deal — for undisclosed reasons — did not appear to dent the firm's interest, and the new structure follows the May 2025 framework. Whether Copper Property's earlier concerns about price or alternatives, which drew investor questions in July 2025, have been resolved is unclear.

The Copper Property Trust Is Nearing the End of Its Task

The trust was created for a specific purpose: dispose of the real estate J.C. Penney shed during bankruptcy. With more than 40 properties already sold, the 117 parcels represent the final major block of that mandate. An accepted offer would effectively turn the last of the portfolio into cash for the trust's beneficiaries. The lack of a response at press time, however, means the deal is far from settled, and investors who pressed trust executives last year about pricing and alternatives are likely to expect a clear rationale for any acceptance.

A Property Sale That Leaves J.C. Penney's Real Problem Untouched

Catalyst Brands' reassurance is accurate: long-term leases mean ownership of the physical stores changes hands while retail operations continue undisturbed. But that is precisely why the deal is not a fix for J.C. Penney. The retailer's challenge is operational — net sales down nearly 5% in the first quarter to $1.25 billion and gross margin under pressure. Selling the properties does not change traffic, pricing or product mix. What it does is put money in the hands of the trust's investors while Catalyst continues its turnaround effort on a foundation of mostly real estate it no longer owns.

What to Watch Before Onyx's Sept. 25 Closing Target

The deal is not done — Onyx says financing is in place and has set a Sept. 25 closing target, but the seller had not responded at press time. For the parties involved, the specific points to watch are:

• Trust investors: an accepted offer would monetize the trust's last 117 properties after more than 40 had already been sold. Expect questions about price and alternatives, given the scrutiny trust executives faced in July 2025.
• Retail real estate professionals: an $8 million-per-store valuation on long-term leased department store boxes across 35 states is the benchmark to gauge whether the bid is accepted, rejected or revised.
• J.C. Penney watchers: the store portfolio sale is operationally neutral under existing long-term leases, so the real performance signals remain first-quarter trends — net sales down nearly 5% to $1.25 billion and contracting gross margin.