JCPenney sells 119 stores for nearly $1 billion amid ongoing closures

In the United States, a significant real estate transaction was recently announced regarding JCPenney. On July 25, 2025, Copper Property CTL Pass Through Trust disclosed that it had reached an agreement to purchase 119 JCPenney stores from the retailer for approximately $947 million in an all-cash transaction. This sale involves about one-fifth of JCPenney’s total store count, which stands close to 650 locations. The stores included in this transaction span across various states, with 21 stores located in Texas, 19 in California, six in Florida, and another six in Michigan. Importantly, the stores will continue operating normally even after the ownership change occurs on or before September 8, 2025, according to company representatives, ensuring that customer service remains uninterrupted in these locations. This development follows a turbulent period for JCPenney, which filed for Chapter 11 bankruptcy during the Covid-19 pandemic. At that time, the retailer faced substantial financial challenges, negotiating with lenders to reduce its massive debt load while considering various strategic options, including potential sales. The bankruptcy proceedings began as part of a broader effort to rejuvenate the business, which had been struggling with closures and losses. The closure of several stores in recent months was also confirmed by the company, though representatives clarified that those actions were not linked to their recent merger with the SPARC Group. In January 2025, JCPenney announced its merger with the SPARC Group, which owns multiple notable retail brands such as Aéropostale, Brooks Brothers, Eddie Bauer, Lucky Brand, and Nautica. This merger aimed to create Catalyst Brands, an organization designed to leverage the strengths of these brands and bolster JCPenney's market presence. Marc Rosen, who was the CEO of JCPenney at the time, became the CEO of this new entity, emphasizing a fresh vision that combines the heritage of their brands with modern business strategies. He expressed confidence that this collaboration would enhance their capabilities in catering to customer needs and preferences. As JCPenney navigates through structural changes and deals aimed at financial recovery, the retail landscape continues to shift significantly. The upcoming sale of these 119 stores marks a pivotal point in their efforts to emerge as a stronger retailer post-bankruptcy and pandemic. It demonstrates the ongoing trends within the retail industry, where mergers and real estate transactions are frequently seen as necessary strategies to adapt to changing market conditions and embrace new business models.