Everyone’s mom is about to be very disappointed. JCPenney has disclosed a list of 154 stores that it plans to permanently close by the end of the summer. These closures are part of their Chapter 11 bankruptcy plan.
Now where will be buying our khakis??
CPenney filed for Chapter 11 bankruptcy protection on May 15, and is now hoping to emerge as a smaller department store chain.
- Chapter 11 is often called the “reorganization bankruptcy.” It’s for businesses that want to keep operating but need time to restructure their finances in order to pay the bills.
Jill Soltau, CEO of JCPenney explained: “While closing stores is always an extremely difficult decision, our store optimization strategy is vital to ensuring we emerge from both Chapter 11 and the COVID-19 pandemic as a stronger retailer with greater financial flexibility to allow us to continue serving our loyal customers for decades to come.”
JCPenney employed 90,000 full- and part-time workers as of February before they filed for bankruptcy. The exact number of workers who will lose their job as a result of the closures is uncertain.
COVID-19 has hit the economy hard, especially those businesses who didn’t receive the coveted “essential” designation. But JCPenney was having trouble even prior to the pandemic. The company has struggled to break its dependence on the shopping mall and failed to innovate in the e-commerce era.
JCPenney has gone from a clothing store to a closing store.