JC Penney closes hundreds of stores in the US due to bankruptcy

Representatives of JC Penney said they plan to close almost 29% of stores - or 242 outlets - as part of their bankruptcy, writes USA Today.

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A few days after filing for bankruptcy, JC Penney representatives said they plan to close more than a quarter of their stores.

According to a document submitted to the Securities and Exchange Commission on Monday, May 18, approximately 29% of 846 retailer stores, or 242 outlets, will be closed between the current and next fiscal year.

The current fiscal year is expected to close 192 stores, and then 50 stores next year, the document says. After the closure, the company will have 604 outlets.

"The approximately 604 locations represent the chain's most profitable and most productive stores," JC Penney officials said.

The bankruptcy petition came in the second week of May after several years of declining sales and strategic mistakes while JC Penney moved from one strategy to keep afloat to another.

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The bankruptcy sets in motion the closure of permanent stores as the retailer seeks to stabilize its financial situation and avoid outright liquidation - something that chains like Toys R Us, Payless ShoeSource and others have failed to avoid.

The list of seats that will be closed as part of the restructuring of JC Penney has not yet been published.

According to an official statement setting out the “Upgrade Plan,” the exact number of stores that will remain open is “still being clarified.”

JC Penney spokeswoman Brooke Buchanan said that on May 20, about 115 stores will open after closing since March due to the COVID-19 pandemic. Earlier, 41 network stores left quarantine.

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