Birmingham Partner Heather Jamison authored an article for Chain Store Age examining how JCPenney’s 2020 bankruptcy filing continues to have implications for commercial real estate six years later.

The Copper Property CTL Pass-Through Trust, established as part of JCPenney’s Chapter 11 reorganization, sought to sell its remaining retail property portfolio to an affiliate of private equity firm Onyx Partners. After the proposed sale failed to close despite multiple deadline extensions, the parties became embroiled in litigation, each accusing the other of wrongdoing.

Heather explores how this dispute could have consequences beyond the failed transaction itself, including potential risks for in-line retail tenants, landlords, and lenders. Co-tenancy provisions in retail leases, triggered by JCPenney's poor financial performance as the anchor tenant, can lead to reduced rental income, declining property values, and loan defaults.

Read Heather’s full analysis at Chain Store Age.