The retail company, J.C. Penney is permanently closing a total of 242 out of the current 846 stores. The number equals a whopping 29% of all their stores. The Plano, Texan retailer is doing so as part of their bankruptcy plan to restructure their business.
In an announcement on Monday, the company declares that 192 stores will close by February 2022. Another fifty stores will close in 2022. The closing of stores will gradually take place between the current and the next fiscal year.
Any list of the locations of the stores that will be permanently closed is yet to be made public by the company. The company will have 604 stores nation-wide after the closures.
Filling for bankruptcy
Several businesses have temporarily closed shop as the pandemic took over. But J.C. Penney is the biggest retailer to file for bankruptcy during the pandemic.
The filing of Chapter 11 bankruptcy reorganization and a filing of a document with the Securities and Exchanges Commission occurred on Friday and Monday, respectively. Currently, the company has $500 million and another $900 million from lenders to get through restructuring.
The retailer seems to be following in the steps of many other big companies that restructured as a result of bankruptcy such as Toys R Us, Payless and ShoeSource.
The bankruptcy announcement comes after the retailer has been financially struggling for years. This was due to strategic missteps on the company’s end and declining sales.
Brooke Buchanan, a spokesperson for J.C. Penney states that 115 stores shall reopen on Wednesday, 41 stores are already open.
There are talks of Amazon buying the company to help and move them from the brink of bankruptcy reports Women’s Wear Daily.