Photo: Courtesy Harrison Daily Times
Bankrupt J.C. Penney plans to permanently shutter 154 stores across the country, with going-out-of-business sales set to begin at those locations next Friday. The 154 locations include the store in Harrison. The 118-year-old retailer plans to close a total of 242 locations by the fall.
On Thursday, company officials said following entry of an order at a hearing with the U.S. Bankruptcy Court for the Southern District of Texas, in Corpus Christi next week, store closing sales will begin at the 154 locations.
The company expects additional phases of store closing sales will begin in the coming weeks. As the company remains focused on its Plan for Renewal and driving sustainable, profitable growth, it intends to reduce its store footprint and focus resources on its strongest stores and powerful eCommerce flagship store, jcp.com. Store closing sales for the first round of store closures are expected to take 10-16 weeks to complete.
“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,” says Jill Soltau, chief executive officer of JCPenney. “I am incredibly grateful to our talented associates for their ongoing dedication and their passion for meeting and exceeding our customers’ expectations during this difficult and uncertain time. All impacted associates will be treated with the utmost consideration and respect.”
Ms. Soltau continues, “We will remain one of the nation’s largest apparel and home retailers as we continue to operate a majority of our stores and our flagship store, jcp.com, to ensure our valued customers continue to have access to the products and brands they need and want. As of June 4, 2020, we have reopened nearly 500 stores since government officials have eased COVID-19 restrictions and we look forward to opening more. We are excited to welcome back our customers and associates at these locations, and we will continue to take actions to be best positioned to build on our over 100-year history.”
As previously announced on May 15, JCPenney entered into a restructuring support agreement with lenders holding approximately 70% 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.
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