JCPenney will close these 138 stores
NEW YORK — JCPenney released its list of 138 stores it planned to close this year. All the stores in the Richmond area appear to have been spared in this round of closures.
Two Virginia stores — one at New River Valley Mall in Christiansburg and one in Tanglewood Mall in Roanoke, are on the list of stores scheduled to close.
“As part of a continuing effort to advance sustainable growth and long-term profitability, J.C. Penney Company, Inc. will be closing 138 stores, one supply chain facility in Lakeland, Fla., and relocating one supply chain facility in Buena Park, Calif., to align the Company’s physical store footprint and omnichannel network. Approximately 5,000 positions nationwide will be impacted by the store closures, most of which occur in June,” a company spokesperson said. “JCPenney is in the process of identifying relocation opportunities within the Company for esteemed leaders. Additionally, JCPenney will provide outplacement support services for those eligible associates who will be leaving the Company. Most affected stores will begin the
liquidation process on April 17.
JCPenney joins a list of traditional retailers scaling back brick-and-mortar stores. Sears Holdings, which includes the Sears and Kmart brands, announced plans to close 150 stores last month, and Macy’s is closing 68 stores and cutting 10,000 jobs.
The Limited closed its remaining stores last month, and American Apparel, which filed for bankruptcy for a second time last year, is expected to close all its stores. Sports Authority went out of business following a bankruptcy filing last year.
By contrast, Amazon expects to hire 100,000 U.S. workers this year as it continues to expand.
JCPenney will take a $225 million hit to its earnings from the cost of closing the stores. But it expects to save $200 million a year in payroll and other costs. It said the stores to be closed had weaker sales or would have needed expensive upgrades.
CNN Wire contributed to this report.