But that $935 million deal, which Onyx said it is working to close, has been delayed multiple times, leading to speculation that it might fall apart, according to multiple published reports Tuesday (Dec. 30).
The stores in question are owned by Copper Property CTL Pass Through Trust, which had been established to acquire 160 stores and six distribution warehouses after JCPenney declared bankruptcy in 2020, Retail Touch Points reported.
The transaction had been set to close in September, but closing dates were postponed throughout the fall, the report said. Last week, the trust submitted a form with the Securities and Exchange Commission saying that the agreement would terminate “if the buyer does not close the transaction by December 26, 2025.”
“Onyx Partners Ltd. continues to work toward closing the previously announced transaction in accordance with the purchase agreement,” said Anton Melchionda, founder and principal/partner at Onyx Partners Ltd. in a statement, per Retail Touch Points. “Certain customary seller deliverables remain outstanding, including tenant-related documentation, and those items are being addressed.”
A separate report by The Street said the terms of the deal require all stores to be sold by January 2026. JCPenney had cited the pandemic as a major factor in its bankruptcy, although the chain had not been profitable in years.
The company’s troubles coincide with the ongoing struggle of malls in the United States. Paco Underhill, founder of consumer behavior research company Envirosell, told PYMNTS that these challenges include vacancies, declining foot traffic and more competition from eCommerce.
With the importance of anchor stores waning and more retailers moving online, malls must reexamine their offerings to remain competitive.
“To be a successful mall takes both money and time,” Underhill said. “Many of these malls were put up quickly, and many haven’t aged particularly well.”
There is a divide in the modern U.S. mall landscape, with well-performing “A malls” and “B and C malls” that are practically deserted, he said.
“Ten percent of shopping malls in the U.S. are doing fine, 20% are holding on, and a good 60% to 70% are not doing well at all,” Underhill told PYMNTS.
