Days after submitting for chapter, J.C. Penney says it plans to shut greater than a fourth of its shops.
Based on a doc filed with the Securities and Exchanges Fee on Monday, roughly 29% of the retailer’s 846 shops, or 242 places, will shut between the present fiscal yr and subsequent fiscal yr.
For the present fiscal yr, which ends in February 2021, 192 shops are anticipated to shut after which 50 within the subsequent fiscal yr, the doc notes. After the closings, the corporate can have 604 remaining places.
“The roughly 604 future fleet symbolize the best sales-generating, most worthwhile, and most efficient shops within the community,” J.C. Penney stated within the SEC submitting.
J.C. Penney retailer closings coming: Retailer making an attempt to keep away from liquidation in Chapter 11 chapter
Can these 13 retailers survive COVID-19: Everlasting retailer closings, bankruptcies coming
Final week’s chapter submitting got here after a number of years of declining gross sales and strategic missteps as J.C. Penney careened from one reinvention technique to a different.
The chapter units in movement the method of everlasting retailer closings because the retailer goals to stabilize its funds and keep away from outright liquidation – a destiny that chains comparable to Toys R Us, Payless ShoeSource and others have not been capable of keep away from.
An inventory of which places will shut as a part of J.C. Penney’s restructuring has not but been launched.
Based on the SEC submitting, which outlines a “Plan for Renewal,” the precise variety of shops that may stay “continues to evolve.”
J.C. Penney spokesperson Brooke Buchanan stated roughly 115 extra shops will reopen Wednesday after being closed since March due to COVID-19. Forty-one shops beforehand reopened.
Amazon and J.C. Penney in talks?
Amazon is reportedly in talks to accumulate J.C. Penney, in line with a report by Girls’s Put on Day by day Monday.
“There’s an Amazon group in Plano as we communicate,” WWD article notes, referencing the Texas metropolis the place J.C. Penney’s headquarters are situated. “There’s a dialogue and I’m informed it has lots to do with Amazon desirous to broaden its attire enterprise.”
J.C. Penney declined to remark and Amazon officers didn’t instantly reply to USA TODAY’s request for remark Monday.
Based on WWD, Amazon might convert J.C. Penney shops to its “high-tech retail format” and convert some websites into distribution facilities.
Contributing: Nathan Bomey
Observe USA TODAY reporter Kelly Tyko on Twitter: @KellyTyko