No local JCP stores to close

  • No local JCP stores to close

No local JCP stores to close

Department store chain J.C. Penney has released the list of stores that will close as part of a plan to bring the company back to profitability.

The closure list includes stores in five in communities-Columbus, Connersville, Huntington, Jasper and Logansport-but none in the Indianapolis area.

The company continues to operate about 900 stores nationwide and had about 105,000 full and part-time employees a year ago.

The department store chain announced February 24 that it planned to close 130 to 140 underperforming stores, or about 14 percent of its locations. In January, Sears announced it was closing its Uniontown store this spring, one of 150 it is closing nationwide.

All of the stores in Morningstar's review had annual sales below J.C. Penney's average of $120 per square foot.The figures, mostly from 2015, were provided by J.C. Penney when they put the securities up for sale, said Morningstar. It also said it would provide outplacement support services for "eligible associates" who will be leaving the company.

The company said it will begin the liquidation process on April 17 and the stores will be closed by June 30.

More than a third of all the J.C. Penney department stores in OR will be shuttered by this summer in a wave of closings expected to affect up to 140 stores nationwide.

Penney's, which has more than 1,000 stores in the United States, is the latest mall-based company to respond to soft earnings with store closings. RadioShack declared bankruptcy last week for the second time in two years and is closing all of its stores.

"The stores identified for closure either require significant capital to achieve the company's new brand standard or are minimally cash flow positive today relative to the company's overall consolidated average", J.C. Penney reported. "This situation is not endemic to Auburn but reflects the new realities of retail and the struggles tenants face competing with online shopping and the evolution of customer needs and tastes".

The company posted quarterly sales of $3.96 billion, down 0.9 percent from $3.99 billion a year ago.