J.C. Penney plans to shut 152 stores
J.C. Penney Co. is proceeding with store closures, negotiating with landlords and cutting 1,000 additional jobs in an effort to slim down during its bankruptcy proceedings.
As part of the restructuring, the retailer has identified 152 stores for the chopping block and said about 1,000 corporate, field management and international positions would be eliminated.
The move comes as J.C. Penney meets works with lenders after filing for Chapter 11 in May. It has struggled for years with falling foot traffic, merchandise issues and connecting with its core customer — problems that have been exacerbated by the COVID-19 pandemic. The department store operator previously announced in May that it would shutter about 29 percent of its stores, joining a larger retrenchment taking place in the retail sector.
Penney filed for bankruptcy protection in May. It had been struggling prior to the coronavirus pandemic, but like many retailers, the virus outbreak intensified their difficulties. Other retailers to file for bankruptcy recently include J. Crew, Neiman Marcus, Brooks Brothers and Sur La Table.
On Tuesday, PVH Corp. announced 450 jobs cuts in North America and said it would close 162 of its stores. PVH owns Van Heusen and IZOD.
Court papers showed that J.C. Penney now has until July 31 to get approval from lenders for a new business plan. That’s an extension from the original July 14 deadline.