This year, department store chain JCPenney closed several of its locations across the United States and has now announced that more than one hundred stores will be sold to a subsidiary of Onyx Partners, a private equity and real estate firm, for $947 million. The main question among customers is: what will happen to these stores? Here’s what we know.
How Many Stores Will JCPenney Sell to Onyx Partners?
The sale comes nearly five years after the retail chain filed for bankruptcy. The agreement includes a total of 119 stores, and the deal is expected to be finalized by September 8, 2025.
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Which JCPenney Stores Are Being Sold?
The stores are located across 35 U.S. states, with a high concentration in Texas and California. Most of the properties are in metropolitan areas near major cities like Austin, Miami, Houston, Los Angeles, and New York City.
What Will Happen to the JCPenney Stores?
As part of its ongoing financial restructuring strategy, JCPenney has completed the sale of multiple properties, but the stores will remain open and fully operational. They will continue to serve customers under a net lease agreement, meaning JCPenney will lease back the properties and retain full responsibility for rent and operational costs—including utilities, maintenance, and insurance.
Which JCPenney stores have closed this year?
In May, the company closed locations in eight U.S. states:
California
- Tanforan store, 1122 El Camino Real, San Bruno
Colorado
- Northfield store, 8568 E 49th Avenue, Denver
Idaho
- Pine Ridge Mall store, 4201 Yellowstone Avenue, Pocatello
Kansas
- West Ridge Mall store, 1821 SW Wanamaker Road, Topeka
Maryland
- Annapolis Mall store
North Carolina
- Asheville Mall store, 3 S Tunnel Road, Asheville
New Hampshire
- Fox Run Mall store, 50 Fox Run Road, Newington
West Virginia
- Charleston Town Center store, 401 Lee Street E, Charleston
Why Did JCPenney Close Stores?
The closures come amid a period of major transformation in the retail industry, which continues to grapple with the long-term impacts of the COVID-19 pandemic, the rapid rise of e-commerce, and shifting consumer habits.
Despite management’s efforts to revitalize the business, progress has been limited. Since filing for Chapter 11 bankruptcy in May 2020, JCPenney has downsized its footprint from about 850 stores to approximately 650. The company clarified that these closures are not related to its recent merger with Sparc Group, a retail operating consortium. The merger aims to stabilize and grow the business.
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JCPenney’s History
JCPenney is a well-known American department store chain with a long-standing presence in shopping malls across the country. The company was founded on April 14, 1902, when James Cash Penney and his partners opened the Golden Rule store in Kemmerer, Wyoming. Within a few years, Penney bought out his partners and led the company’s expansion across the western U.S.
The company was officially incorporated as the JC Penney Stores Company in 1913, already operating 34 stores. In 1914, it moved its headquarters to New York City and went public in 1927. By 1929, JCPenney had over 1,300 locations.
Over the decades, JCPenney diversified its offerings—introducing credit sales in 1958, launching its catalog in 1963, and entering the pharmacy sector by acquiring Thrift Drug and later Eckerd Drug Corp., at one point operating thousands of pharmacies. The company also ventured internationally, opening stores in Belgium, Italy, Mexico, and Chile, though it shut down its international division in 2003. In 1988, the company relocated its headquarters to Plano, Texas.
In the 2000s, JCPenney faced growing challenges from discount retailers and the 2008 financial crisis. The 2020 pandemic delivered a major blow, forcing store closures and leading to its bankruptcy filing. Later that year, it was acquired by Simon Property Group and Brookfield Asset Management for $800 million, beginning a new chapter for the iconic retailer.
