Plano, Texas — The closings are expected to result in an annual cost savings of approximately $65 million.
Plano, Texas — J.C. Penney Co. Inc. will close 33 underperforming stores across the country in order to focus its resources on the company’s highest potential growth opportunities. The closings are expected to result in an annual cost savings of approximately $65 million, beginning in 2014.
“As we continue to progress toward long-term profitable growth, it is necessary to reexamine the financial performance of our store portfolio and adjust our national footprint accordingly,” says Myron E. (Mike) Ullman III, chief executive officer of JCPenney. “While it’s always difficult to make a business decision that impacts our valued customers and associates, this important step addresses a strategic priority to improve the profitability of our stores and position JCPenney for future success.”
In connection with this initiative, the company expects to incur estimated pre-tax charges of approximately $26 million in the fourth quarter of fiscal 2013 and approximately $17 million in future periods.
Remaining inventory in the affected stores will be sold during the next several months, with final closings expected to be complete by early May. The closings will result in the elimination of approximately 2,000 positions.
J. C. Penney Co. Inc. operates approximately 1,100 stores. For more information and for a list of which stores are closed, visit www.jcpmediaroom.com.
SOURCE: J.C. Penney Co. Inc.