Dive Brief:
- J.C. Penney on Monday stated that the company is shutting an additional 13 stores, according to a company email sent to Retail Dive.
- Store closures include two locations in Washington, seven in Michigan, one in Maryland, two in New York, and one in California, pending court approval. Store sales are expected to begin on or around July 3, according to the company.
- "These decisions were made based on a comprehensive evaluation of our retail footprint and a careful analysis of store performance and future strategic fit for JCPenney," a company spokesperson said.
Dive Insight:
It's been a little over two weeks since J.C. Penney announced phase one of its store closures plan.
On June 4, the department store identified 154 stores it will permanently close in bankruptcy, with a warning that more store closures were expected as the company goes through the bankruptcy process. Liquidation sales at 136 of those stores began on June 17, with locations clearing merchandise with discounts of up to 40% off. This next set of closures constitutes phase two, and a phase three is also on the horizon.
The retailer also recently received court approval for a bankruptcy financing package that gives it access to $225 million, with access to an equal amount in July, subject to conditions.
J.C. Penney store closures
| State | City | Mall Name |
|---|---|---|
| California | Concord | Sun Valley Mall |
| Maryland | Hyattsville | Mall at Prince George's |
| Michigan | Greenville | Greenville West Mall |
| Michigan | Owosso | N/A |
| Michigan | Big Rapids | N/A |
| Michigan | Alma | Northtown Village |
| Michigan | Bay City | Bay City Mall |
| Michigan | Mt. Pleasant | Mt. Pleasant Shopping Center |
| Michigan | Okemos | Meridian Mall |
| New York | Bay Shore | South Shore Mall |
| New York | Poughkeepsie | Poughkeepsie Galleria |
| Washington | Sunnyside | Mid Valley Mall |
| Washington | Omak | Omache Shopping Center |
Source: J.C. Penney
When J.C. Penney filed for bankruptcy in mid-May, the company cited the COVID-19 pandemic as a main reason for its moving to file Chapter 11.
"Until this pandemic struck, we had made significant progress rebuilding our company under our Plan for Renewal strategy — and our efforts had already begun to pay off," the company's CEO, Jill Soltau, said at the time. "While we had been working in parallel on options to strengthen our balance sheet and extend our financial runway, the closure of our stores due to the pandemic necessitated a more fulsome review to include the elimination of outstanding debt."
But, the company's problems reach back further than the pandemic. Sales declines, debt, profit losses, problems with merchandise assortment and the decline of malls all played a roll in undermining the retailer's potential for an effective turnaround.
