As part of its Chapter 11 bankruptcy restructuring program, JC Penney is immediately closing 154 stores and will seek warehouse liquidations. Previously the department store chain had planned to close 242 locations, leaving roughly 600 open. The company expects to start further phases of closing store sales tol in the coming weeks. It believes that its store optimization strategy is critical to ensuring that it emerges as a stronger retailer with greater financial stability from both Chapter 11 and the COVID-19 pandemic to enable it to continue serving its loyal customers for decades.
Since government officials relaxed the restrictions on COVID-19, the company had reopened almost 500 stores. Before the COVID-19 crisis struck the 117-year-old department store chain was already under financial pressure. Sales of the same store fell more than expected in its most recent quarter, and its net loss nearly doubled.