JCP Stock – JCPenney Announces 2,000 Layoffs, 33 Stores Closing

by Burke Speaker | January 16, 2014 10:24 am

Embattled clothing retailer JPenney (JCP[1]) announced it’s closing 33 stores and laying off some 2,000 workers in a bid to improve the company’s finances and JCP stock.

[2]JCPenney has not revealed holiday sales numbers (though JCP has said it was pleased but declined to give numbers) and the chain desperately needs a new plan to turn around from its previous attempts at a resurgence.

With news of the layoffs and store closings, many analysts believe the holiday sales were lackluster.

The cuts announced Wednesday should save more than $65 million each year. The company will take $26 million in pre-tax charges in Q3 and $17 million in future quarters.

JCP and JCP stock is still trying to recover from terrible losses in the past and a continued drop in sales.

Former CEO Ron Johnson was axed in April after being on the job for a little more than a year. (The company then brought back former CEO Mike Ullman.)

In the past year, JCP stock is down 64% — with really no way forward that’s been proposed for the struggling retailer.

While investors are looking to JCP for restructuring the closings and cuts instead look like another short-term strategy that is unlikely to pay off for the company.

An analyst for Morningstar Inc. stated that “the closing of 33 stores sounds like not all is well … It’s also not a massive restructuring.” (Via Los Angeles Times[3])

Check out the details of which stores are closing here.[4]

JCPenney has 116,000 staffers and operates more than 1,100 stores.

Source URL: https://investorplace.com/2014/01/jcp-stock-jcpenney-layoffs-stores-closing/

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