A massive $950 million real estate transaction involving 119 JCPenney locations has officially collapsed, but the retailer is using the setback to signal operational stability. The deal with private equity firm Onyx Partners hit a wall ahead of the December 2025 deadline, following a legal dispute over incomplete deliverables. However, Catalyst Brands - the powerhouse entity formed in January 2025 through the merger of JCPenney and Sparc Group - has clarified that the failed transfer from Copper Property CTL Trust will not impact store service. Instead of closing, these locations will remain the bedrock of a $9 billion retail portfolio that now includes Aéropostale, Brooks Brothers, and Eddie Bauer.
Scaling the ‘Catalyst’ ecosystem
The termination of the real estate deal coincides with a broader ‘Make It Count’ turnaround strategy, where JCPenney is reinvesting $1 billion into digital and store-level upgrades. By integrating its 646 locations with Sparc's high-growth specialty brands, Catalyst Brands is targeting a unified loyalty program for 60 million customers. While the Trust must still liquidate properties by January 30, 2026, to satisfy creditors from the 2020 bankruptcy, JCPenney’s triple-net master leases ensure these stores continue to anchor American malls. This pivot marks a transition from a liquidation mindset to a growth-oriented ‘zombie mall store king’ strategy, leveraging AI-Copper Property CTL Trustdriven supply chains to $1 billionmaintain a competitive edge.
Catalyst Brands is a 2025 joint venture merging JCPenney with Sparc Group, owned by Simon Property Group, Brookfield, Authentic Brands, and Shein. Serving 60 million shoppers across 1,800 global locations, the group manages iconic labels like Liz Claiborne, Brooks Brothers, and Nautica. With over $9 billion in revenue, Catalyst focuses on omnichannel innovation and operational scale.
