Copper Property Trust Filed Lawsuit Against Onyx Partners

A failed $947 million acquisition of 117 retail stores led the trust to sue the buyer in Massachusetts.

Updated on Oct. 14, 2026 in Retail

Copper Property Trust Filed Lawsuit Against Onyx Partners

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The Copper Property CTL Pass-Through Trust filed suit against Onyx Partners following a failed $947 million acquisition of 117 retail stores. The transaction missed its scheduled closing deadline of Dec. 22, 2025.

Why it matters

The lawsuit aims to resolve issues surrounding the failed sale and clear property titles clouded by notices of pendency. It highlights the financial strain on the portfolio, which saw a shift from profit to loss over the last year.

The Trust reported an $11 million net loss over the six months preceding Sept. 16, 2026, compared to $41 million in income during the same period in 2025. Additionally, Onyx Partners filed 38 notices of pendency across four states.

The players

Copper Property CTL Pass-Through Trust

This entity was established in 2021 to manage the liquidation of former JCPenney retail stores and distribution centers.

Onyx Partners

This investment firm attempted to acquire a large portfolio of retail properties from the trust.

The details

The Trust was established in 2021 to liquidate assets stemming from the 2020 JCPenney Chapter 11 reorganization. Litigation is ongoing as the parties contest the failed transaction, with the buyer reportedly cycling through lenders before the deadline passed.

JCPenney underwent Chapter 11 reorganization in 2020.
The Copper Property CTL Pass-Through Trust was established in 2021.
The purchase deadline passed on Dec. 22, 2025.
The Trust filed suit against Onyx Partners on Aug. 25, 2026.
The Trust reported its second quarter financial results on Sept. 16, 2026.

Market Landscape

This dispute marks a complex phase in the liquidation of assets originating from the 2020 JCPenney Chapter 11 reorganization. The litigation highlights the volatility of distressed retail real estate portfolios and the challenges buyers face in securing financing.

Customers shopping at these locations may face uncertainty regarding future property management or potential store changes while titles remain clouded. The legal proceedings could delay renovations or operational improvements at the affected retail sites.

The takeaway

Large-scale commercial property sales require secure, verified financing to meet strict closing deadlines. When deals fall through, protracted legal battles can tie up real estate assets for years.