Sign in or Register

Already a member?

Sign in

Or sign in with your account on:

Not a member yet?


JC Penney Closing 33 Stores, Cutting 2,000 Jobs

By  +Follow January 15, 2014 6:03PM
Tickers Mentioned:

In its ongoing bid to get back on its feet, embattled retailer JC Penney Company, Inc. (JCP) announced after Wednesday’s closing bell that it is shuttering 33 underperforming stores across the U.S., including five stores in Wisconsin, a state where rival Kohl’s (KSS) has a strong presence.  With that comes the dismissal of approximately 2,000 employees.

Penney’s has shed more than 40,000 positions in the last couple years, against a backdrop of diving sales.

Penney’s thinks that the move will save the company about $65 million annually, starting this year. Inventory at the stores will be sold with the store closings expected to be completed by early May.

The company added that it expects a pretax charge of about $26 million in Q4 2013 and about $17 million in future quarters related to the store closings.

On the optimistic side of the tracks, Penney’s is proceeding with opening a new store in Brooklyn, New York. JCP still has more approximately 1,100 stores nationwide.

"As we continue to progress toward long-term profitable growth, it is necessary to reexamine the financial performance of our store portfolio and adjust our national footprint accordingly," said Myron E. Ullman, III, chief executive officer of JCPenney. "While it's always difficult to make a business decision that impacts our valued customers and associates, this important step addresses a strategic priority to improve the profitability of our stores and position JCPenney for future success."

In April last year, Ullman returned to the helm of Penneys, replacing Ron Johnson (whom had replaced Ullman) after 16 months as CEO. Ron Johnson poor showing to try and turn the company around earned him the dubious distinction as numero uno on Fox Business’ list of the worst CEO’s of 2013.

For Johnson’s part, he tore the company apart from top to bottom and tried to put it back together with new management and promotional philosophy. Needless to say…he failed miserably and was given the boot. Investors who lived through the turmoil like to point a finger (I won’t say which finger) at hedge fund billionaire Bill Ackman, whose Pershing Square Capital Management had an 18-percent stake in the company and fought ferociously to put former Apple (AAPL) retail head Johnson into the big office at JCP.

When Ackman dumped his shares of JCP in August, it was reported that he lost more than $500 million on the investment. A look at Ackman’s history with retailers – he also lost big on Target (TGT) – should have any retailer shaking when the activist investor comes calling.

With all that water under the bridge, Ullman still faces a tall task to save the 111-year old iconic retailer. Analysts are expecting the company to have a net loss of about 70 cents in the latest quarter, which included the important holiday season.

Shares of JCP are still sitting near 25-year lows, closing Wednesday at $7.01 for a gain of 1.2 percent on the day. Shares moved modest lower to $6.95 in extended trading following the restructuring news.

The list of the stores that will be closed (and the shopping center if applicable)

Selma, AL  - Selma Mall

Rancho Cucamonga, CA - Arrow Plaza

Colorado Springs, CO - Chapel Hills Mall

Meriden, CT - Meriden Square

Leesburg, FL - Lake Square Mall

Port Richey, FL - Gulf View Square

Muscatine, IA - Muscatine Mall

Bloomingdale, IL - Stratford Square Mall

Forsyth, IL - Hickory Point Mall

Marion, IN - Five Points Mall

Warsaw, IN - Marketplace Shopping Center

Salisbury, MD - The Centre at Salisbury

Marquette, MI - Westwood Plaza

Worthington, MN - Northland Mall

Gautier, MS - Singing River Mall

Natchez, MS - Natchez Mall

Butte, MT - Butte Plaza Shopping Center

Cut Bank, MT

Kinston, NC - Vernon Park Mall

Burlington, NJ - Burlington Center

Phillipsburg, NJ - Phillipsburg Mall

Wooster, OH - Wayne Towne Plaza

Exton, PA - Exton Square Mall

Hazleton, PA – Laurel Mall

Washington, PA - Washington Mall

Chattanooga, TN - Northgate Mall

Bristol, VA - Bristol Mall

Norfolk, VA - Military Circle Mall

Fond Du Lac, WI - Forest Mall

Janesville, WI - Janesville Mall

Rhinelander, WI - Lincoln Plaza Center

Rice Lake, WI - Cedar Mall

Wausau, WI - Wausau Mall

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions.

Signup for our daily newsletter and get our best articles emailed right to you!

Results for jcp
2 Sep 14 00:46:06
Hot Tweets for $JCP (PENNEY J C INC symbol JCP) on 09/02/2014 http://t.co/nVIu9aqftw
Jet Life PennyStock$
2 Sep 14 00:44:21
Dollar$OnPennies: $JCP Gallery View http://t.co/eYGkcTm6rs
Stock Signaling
2 Sep 14 00:31:04
Movers and Shakers: Recently Upgraded: $TSLA $BAC $JCP http://t.co/Vtx6dLy0Nw #spy #analytics #investors #finance #wallstreet #nasdaq #stock
Stock News Updates
2 Sep 14 00:28:21
$JCP: Athleisure Wear Fad A Rapidly Growing, But Crowded Space http://t.co/mjak3NNzWY http://t.co/6KPElFJRJe
2 Sep 14 00:22:39
J.C. Penney Company Inc (JCP) 10.80 $JCP Why Best Buy Looks Like a Bargain Despite Revenue Struggles at The St http://t.co/jzctaZ1E1a
2 Sep 14 00:20:53
JCP 10.80 Stock Charts $JCP J.C. Penney Co. Inc. (NYSE) Last Updated: 09/02/2014 02:20:55 JCP Stock Chart - 1 http://t.co/pHEttTO5nx
Games forever
2 Sep 14 00:18:03
$JCP J.C. PENNEY http://t.co/HMLNojnyGl
IH News Desk
2 Sep 14 00:13:09
$ABT Stock Message Board http://t.co/TqxHS9oQ2v Also See: $NRF $XLB $COP $JCP ~
Stock Forums
2 Sep 14 00:12:16
$ABT Message Board Posts http://t.co/awCyAyhML0 Also See: $JCP $FCX $TNA $EWG ~
Langan Stocks
2 Sep 14 00:12:13
$ABX Tick http://t.co/x8yR02hxzf Also See: $DRYS $JCP $SPWR $PBR ~
Stock Signaling
2 Sep 14 00:01:03
Watchlist: $BAC $TSLA $BWP $AVGO $TRP $JCP $ITMN $ICPT $IVZ $IG $SCHW $BPZ $BMO $ACHN $JPM http://t.co/Vtx6dLy0Nw #analyst #investors #nyse
1 Sep 14 23:08:44
$JCP A lesson in buying low in a high group http://t.co/NvpJ9EffXZ
George A. Medina
1 Sep 14 22:44:04
RT @TheStreet: J.C. Penney opened its first Brooklyn store on Friday, and that's only part of the $JCP revival: http://t.co/1UKb8oW7PN
Alysia Sarkisian
1 Sep 14 21:49:34
RT @TheStreet: J.C. Penney opened its first Brooklyn store on Friday, and that's only part of the $JCP revival: http://t.co/1UKb8oW7PN
John Michael
1 Sep 14 21:49:32
RT @TheStreet: J.C. Penney opened its first Brooklyn store on Friday, and that's only part of the $JCP revival: http://t.co/1UKb8oW7PN
You Need SEO
1 Sep 14 21:47:48
RT @TheStreet: J.C. Penney opened its first Brooklyn store on Friday, and that's only part of the $JCP revival: http://t.co/1UKb8oW7PN
Sterling Holmes
1 Sep 14 21:45:24
RT @TheStreet: J.C. Penney opened its first Brooklyn store on Friday, and that's only part of the $JCP revival: http://t.co/1UKb8oW7PN
1 Sep 14 21:45:19
RT @TheStreet: J.C. Penney opened its first Brooklyn store on Friday, and that's only part of the $JCP revival: http://t.co/1UKb8oW7PN
1 Sep 14 21:45:04
J.C. Penney opened its first Brooklyn store on Friday, and that's only part of the $JCP revival: http://t.co/1UKb8oW7PN
1 Sep 14 20:37:17
$IWEB closed up 100% today, on more than 290 MILLION shares traded! Huge News: http://t.co/ucQcnpafDY $JCP $AQUM $WSGI
Market News
1 Sep 14 20:28:29
$JCP: [video] If you bought the dip ... http://t.co/CY5E87rrnP http://t.co/3HaAOmk504
Stock Signaling
1 Sep 14 19:31:03
25 Stocks To Watch: http://t.co/Vtx6dLy0Nw : $BAC $TSLA $BPZ $JCP #stockmarket #trading #markets #investing #trader #spy #nyse #wallstreet
Wall Street News
1 Sep 14 19:28:49
$JCP: JC Penney Company Inc. http://t.co/q6jq8o5HWC http://t.co/1Ed5Lg6ziq
1 Sep 14 19:20:42
For 9/2/14 I am watching $JCP $AMZN $MEET $EVRY $NMBL
Stock Signaling
1 Sep 14 18:31:04
Volume Leaders: $BAC $AVGO $TSLA $JCP $JPM $SPLK $OWW http://t.co/Vtx6dLy0Nw #nyse #stockpicks #watchlist #trading #wallstreet #daytrading
1 Sep 14 16:21:21
Gimme 2 big board plays for the last half of the year that you like ppl. $JCP and $IRE are two for me. Could see like 30-40% gains I think.
1 Sep 14 16:09:09
$IWEB closed up 100% today, on more than 290 MILLION shares traded! Huge News: http://t.co/ucQcnpafDY $JCP $AQUM $WSGI
1 Sep 14 15:01:20
Weekly Chart Gallery $GLUU $GM $JCP $SODA $SPX $NFLX $DDD $GDX $LNKD $LVS $MNKD $GPRO $TSLA $TWTR $AMZN http://t.co/C8AiBM5Fla
Shomik Ghosh
1 Sep 14 12:34:46
RT @JBoorman: FYI the names I already have are $MSFT $AA $FISV $MAR $DIS $ATVI $GILD $AAPL $DPS $HPQ $LMT $IPG $PCLN $TSLA $JCP $HD $BRK.B
Jon Boorman, CMT
1 Sep 14 12:21:27
FYI the names I already have are $MSFT $AA $FISV $MAR $DIS $ATVI $GILD $AAPL $DPS $HPQ $LMT $IPG $PCLN $TSLA $JCP $HD $BRK.B
Stock Updates
1 Sep 14 10:28:41
$JCP: Why JC Penney Has Gained 10% In The Last Five Days http://t.co/Ui6wR49C4W http://t.co/0N6oV1N4Nb
Rick  dan
1 Sep 14 09:38:17
Wisdom_Trade long on $JCP still go to $12
Brandon Rudolph
1 Sep 14 09:20:33
http://t.co/4iMeotEZUC $jcp
1 Sep 14 08:57:03
Dollar stores in battle to double down on the poor http://t.co/GBsG5obx9E $DG $WMT $DLTR $TGT $M $FDO $JCP
Stock Forums
1 Sep 14 08:53:07
$KNDI Day Low http://t.co/68L7D6dckQ Also See: $INVN $KRED $SWHC $JCP ~
Investors Hangout
1 Sep 14 08:49:07
$KMP Shares http://t.co/ZRbK80ee70 Also See: $JCP $A $YRI.TO $XLU ~
Bulls vs Bears
1 Sep 14 08:28:37
$JCP: Why J.C. Penney (JCP) Stock Is Slipping Today http://t.co/p275UkUt4N http://t.co/AxUJCBnHJ4
Investors Hangout
1 Sep 14 08:27:08
$JCP Summary http://t.co/W2vIGYe786 Also See: $AKAM $DIS $HYG $AAPL ~
1 Sep 14 08:26:11
$JCP Summary http://t.co/sPjNOHTUst Also See: $IBM $GLD $SGLB $ITMN ~
Investors Hangout
1 Sep 14 08:19:47
$JCP Short Sales http://t.co/ORJruD4WFz Also See: $UGAZ $KRED $NBR $DDM ~
Stock Forums
1 Sep 14 08:17:17
$JCP Current Price http://t.co/YROogLfd9A Also See: $KNDI $FXE $COP $AUO ~
1 Sep 14 08:10:05
RT @Inbox101: LONG: $impv $aapl $tmv $jcp $fuel $tza $bbry SHORT: $kss $fb $tza
Brian Mcdone
1 Sep 14 08:09:28
RT @Inbox101: LONG: $impv $aapl $tmv $jcp $fuel $tza $bbry SHORT: $kss $fb $tza
Money Jones
1 Sep 14 08:09:08
LONG: $impv $aapl $tmv $jcp $fuel $tza $bbry SHORT: $kss $fb $tza
Chasing Stars
1 Sep 14 08:03:18
$JCP Message Board Posts http://t.co/2TXZNNcbpV Also See: $COP $EXPE $VZ $XLY ~
Rosner Stocks
1 Sep 14 08:01:28
$JCP Prev Close http://t.co/kIJWNTmPw0 Also See: $EEM $XLB $C $EWZ ~
Stock Signaling
1 Sep 14 08:01:05
Movers and Shakers: Recently Upgraded: $ACHN $JCP $AEO $DG $WIN $JPM $TSLA $BAC $VZ http://t.co/Vtx6dLy0Nw #investing #dow #analyst #nasdaq
Investors Hangout
1 Sep 14 07:34:18
$ITMN Message Board Posts http://t.co/T40DEmI8rz Also See: $QLD $JCP $GDX $EBAY ~
Biz News Pioneer
1 Sep 14 07:28:49
$JCP: Why J.C. Penney's New Brooklyn Store Is Only Part of the Revival http://t.co/MQHZSkxg26 http://t.co/XtDAoAfWeg
Andre Smith
1 Sep 14 07:19:08
RT @SeekingAlpha: J.C. Penney: Saying Sayonara To The Bankruptcy Discount http://t.co/n4gUBfYKCg $JCP
By  +Follow January 15, 2014 6:03PM



blog comments powered by Disqus

About us

Equities.com is the most advanced interactive online social ecosystem for the financial industry, serving as a resource center and next-generation communication platform that connects self-directed investors with public issuers, market experts, and professional service providers and vendors. Registered members can leverage our exclusive proprietary research tools such as the Small-Cap Stars, which outperformed 90% of all small-cap mutual funds, and robust do-it-yourself E.V.A. research reports. The Equities.com Issuer Dashboard is the ideal tool to communicate and manage investor awareness campaigns to the investment community, as well as to access valuable resources to help your company grow.

Market Data powered by QuoteMedia.
Copyright © QuoteMedia. Data delayed 15 minutes unless otherwise indicated. Terms of Use.