More than 100 JCPenney stores across the country including some in Illinois have been sold to an affiliate of Boston-based private equity firm Onyx Partners, Ltd for a cash total of $947 million, with the deal scheduled to close this fall.
The deal, which comes five years after the once-popular department store declared bankruptcy, is the result of an “exhaustive marketing and sale process,” run by real estate firm Newmark, a release said. The deal also means Onyx Partnerships will take ownership of all JCPenney-leased stores, including those at malls, and provides limited “termination rights on a property-by-property basis.”
As part of the 2020 bankruptcy, Copper Property CTL Pass Through Trust took control of 160 JCPenney retail properties and six warehouse distribution centers, with the intent to sell. The deal with Onyx includes 119 of those stores.
According to Newmark, at least four of those JCPenney stores were in Illinois, including Orland Park, Vernon Hills, North Riverside and Mokena. Reports say a store in Algonquin was also part of the deal. Newmark did not immediately respond to NBC Chicago’s request for clarification.
Currently, all 119 JCPenney stores sold remain open, and it wasn’t immediately clear what was planned for those stores.
The deal is expected to close Sept. 8, Copper Property said.
Earlier this year, JCPenney announced it was closing seven stores across the U.S., citing expiring lease agreements, market conditions and other business considerations. In 2023, a report from the Associated Press said the department store said it was planning to spend more than $1 billion by the end of 2025 to revive the storied-but troubled 121-year-old chain.
According to website, JCPenney currently has 649 stores across the U.S.