Plano, Texas — J. C. Penney Company, Inc. has begun implementing its store optimization strategy by identifying the first 154 stores to close. Following entry of an order at the June 11, 2020, hearing with the U.S. Bankruptcy Court for the Southern District of Texas, in Corpus Christi, Texas, store closing sales will begin at 154 locations.
The company expects additional phases of store closing sales will begin in the coming weeks. Additionally, the company intends to reduce its store footprint and focus resources on its strongest stores and e-commerce site, www.jcp.com. Store closing sales for the first round of store closures are expected to take 10-16 weeks to complete.
“While closing stores is always an extremely difficult decision, our store optimization strategy is vital to ensuring we emerge from both Chapter 11 and the COVID-19 pandemic as a stronger retailer with greater financial flexibility to allow us to continue serving our loyal customers for decades to come,” says Jill Soltau, chief executive officer of JCPenney.
“We will remain one of the nation’s largest apparel and home retailers as we continue to operate a majority of our stores and jcp.com,” continues Soltau. “As of June 4, 2020, we have reopened nearly 500 stores since government officials have eased COVID-19 restrictions and we look forward to opening more.”
The list of 154 stores that will begin closing sales can be found on the JCPenney Blog.
In May, the more than 100-year-old retailer filed voluntary petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code. Kirkland & Ellis LLP is serving as legal adviser, Lazard is serving as financial adviser, and AlixPartners LLP is serving as restructuring adviser to the company.
J. C. Penney Company, Inc., one of the nation’s largest apparel and home retailers, has approximately 850 stores across the United States and Puerto Rico. For more information, visit www.jcp.com.
SOURCE: J. C. Penney Company, Inc.