As part of J.C. Penney’s store optimization strategy in order to get them out of bankruptcy, the retailer is shutting down 154 of their stores permanently. On Thursday, the locations of these stores were made public.
The closing sales for these locations shall kick start from 12 June, after their bankruptcy hearing the day before. Following the sales, other steps to closing will closely follow up in the week after.
On 15 May, the apparel retailer had filed for Chapter 11 bankruptcy protection. The company has $500 million and will receive another $900 million from lenders who hold 70 percent of the company’s debt.
Currently, the retailer is using its funds on the closing of stores and sales through their online website. Approximately 90,000 workers are part of the company as of February, this count consists of both full-time and part-time workers.
When the pandemic forced several non-essential businesses to close down, J.C.Penney did the same. As they shut down their stores temporarily, the company was pushed towards the brink of bankruptcy as their debt grew.
Information on the closing
The retailer informs that the closing of the stores will take anywhere from 10 to 16 weeks. J.C.Penney owns and operates a whopping total of 850 stores located in the U.S. and Puerto Rico.
Jill Soltau, the CEO of J.C.Penney spoke about the company’s strategy. Soltau expresses how difficult it was to make the decision of closing the stores but says how vital the strategy is.
The strategy will help the company emerge with greater financial flexibility. The retailer hopes to successfully overcome both, the COVID-19 pandemic as well as the Chapter 11 bankruptcy, to continue to serve its customers.