The JCPenney stores at Destiny USA in Syracuse; Auburn, Rome, New Hartford, and Oswego are among seven New York stores the retailer plans to close. J. C. Penney Company, Inc. (OTC MKTS: JCPNQ), parent company of the retailer JCPenney, will shutter the locations in New York as part of 154 store closures nationwide. The company […]
The JCPenney stores at Destiny USA in Syracuse; Auburn, Rome, New Hartford, and Oswego are among seven New York stores the retailer plans to close.
J. C. Penney Company, Inc. (OTC MKTS: JCPNQ), parent company of the retailer JCPenney, will shutter the locations in New York as part of 154 store closures nationwide.
The company on June 4 announced the closures and described them as “the first step in implementing its store optimization strategy.”
JCPenney identified the 154 stores following a “comprehensive evaluation of its retail footprint and a careful analysis of store performance and future strategic fit for the company,” per its news release
Store closing sales will begin at the 154 locations following entry of an order at a June 11 hearing with the U.S. Bankruptcy Court for the Southern District of Texas, in Corpus Christi, Texas, the company said.
Store closing sales for the first round of store closures are expected to take 10-16 weeks to complete.
JCPenney says it intends to reduce its store footprint and focus resources on its strongest stores and e-commerce flagship store, jcp.com.
As previously announced on May 15, JCPenney, which was founded in 1902, entered into a restructuring support agreement with lenders holding about 70 percent of JCPenney’s first lien debt to reduce the company’s “outstanding indebtedness and strengthen its financial position.”
To implement the financial restructuring plan, the company filed voluntary petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code.
“While closing stores is always an extremely difficult decision, our store optimization strategy is vital to ensuring we emerge from both Chapter 11 and the COVID-19 pandemic as a stronger retailer with greater financial flexibility to allow us to continue serving our loyal customers for decades to come,” Jill Soltau, CEO of JCPenney, contended.
JCPenney, which has about 85,000 employees nationwide, is also reducing its workforce.