J.C. Penney to Close Stores, Lay Off 2,000
PLANO, Texas-J.C. Penney said it will close 33 underperforming stores throughout the country, thus resulting in the layoffs of 2,000 employees.
The company said the store closings and layoffs are part of its turnaround efforts, and will enable it to focus its resources on what it described as its "highest potential growth opportunities." The moves are expected to save the retailer about $65 million a year beginning this year. J.C. Penney added that it expects to incur pretax charges of about $26 million during this fiscal quarter and about $17 million in future periods.
The final store closings are expected to be completed in early May. J.C. Penney said it is also continuing its plans to open a new store later this year at the Gateway II development in Brooklyn, N.Y.
"As we continue to progress toward long-term profitable growth, it is necessary to reexamine the financial performance of our store portfolio and adjust our national footprint accordingly," said Myron Ullman III, J.C. Penney's CEO. "While it's always difficult to make a business decision that impacts our valued customers and associates, this important step addresses a strategic priority to improve the profitability of our stores and position J.C. Penney for future success."