Fashion

JCPenney to close 13 more stores


JCPenney to close 13 more stores

Struggling retailer J. C. Penney Co. Inc.
has issued a new list of 13 more stores to be closed permanently as
part of its Chapter 11 bankruptcy process. The department store chain
would begin liquidation sales at the stores on July 3, pending court
approval.

The latest store closures reportedly include seven in Michigan, and
the remaining in New York, Washington, and California.

JCPenney already starting closeout sales

The company has already begun going-out-of-business sales at 136
stores on June 17. The store closures are part of its earlier
announced plans to close 242 locations or around 30 percent of its
total 846 stores.

JCPenney had filed for bankruptcy protection in mid May citing the
impact of unprecedented coronavirus or COVID-19 pandemic on its
business.

The 118-year-old retailer, which has already been struggling with
years of sales declines amid stiff online competition, then said it
would close about 192 stores by February next year, and about 50
stores in 2022.

Following this, the company would be operating around 604 stores,
which accounted for 82 percent of its fiscal 2019 sales.

In an earlier filing with the U.S. Securities and Exchange
Commission, JCPenney said the approximately 604 future fleet
represent the highest sales-generating, most profitable, and most
productive stores in the network.

JCPenney expects the bankruptcy process would help to cut debt and
remain in business.

Meanwhile, the company in late May said it reopened 150 stores in 27
states following months-long coronavirus lockdown, bringing the then
total store openings to 304 stores. The company was targeting to
reopen nearly 500 stores by June 3.

The coronavirus lockdown and related crisis took a toll on retailers
as the majority of brick and mortar stores remained closed across the
globe. Many stores have reopened, but customers remain reluctant to
venture out due to fear of Covid-19 spread as well as financial
struggles following job losses.

Retailers Neiman Marcus Group Inc., J.Crew Group Inc. and Stage
Stores Inc. also filed for bankruptcy in May.(DPA)

Picture:JCPenney newsroom



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