J C Penney Company Inc (JCP) Announces Closing of 130 Stores or More

Advertisement

J C Penney Company Inc (NYSE:JCP) has announced that it is closing up to 140 stores in the near future.

JCP, JCP Stock, J C Penney Company Inc

JCP says that it will be closing between 130 and 140 stores over the next few months. The company is taking this action as part of a plan to align its “brick-and-mortar presence with its omnichannel network.”

It isn’t just stores that JCP will be closing. The retailer is also planning to shut down two distribution centers. One of these is located in Lakeland, Fla., and it will close in June. The other is the company’s supply facility in Buena Park, Calif., which it is looking to sell.

JCP says that operations from its Lakeland, Fla., facility will be transferred to its logistics facility in Atlanta, Ga. The retail company notes that the closing of the distribution centers will help it with its plan to streamline store support and redirect capital to locations that will produce the most revenue.

JCP also notes that it will be offering separation benefits to employees in the closing stores and distribution centers. These benefits will include helping them find other jobs, resume writing and more.

JCP is also offering early retirement to some of its employees. The company says that the voluntary retirement program will be available to employees that were of a certain age as of Jan. 31, 2017. Employees that are eligible have until March 17, 2017 to decide if they want to take up the company on its early retirement offer.

JCP isn’t the only retailer that is closing stores this year. Sears Holdings Corp (NASDAQ:SHLD) has plans to close down quite a few Sears and Kmart locations in 2017. Macy’s Inc (NYSE:M) also announced it will be closing several stores this year.

JCP stock was down 8% as of Friday morning.


Article printed from InvestorPlace Media, https://investorplace.com/2017/02/jcp-stock-j-c-penney-company-inc/.

©2024 InvestorPlace Media, LLC