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JC Penney Closing 33 Stores, Cutting 2,000 Jobs

By  +Follow January 15, 2014 6:03PM
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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.


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Results for jcp
indievestments
31 Oct 14 05:34:13
@Inbox101 does it stand to reason that there is a lot of market share for $jcp and $kss to lose then? No position.
Kenneth Rapoza
31 Oct 14 05:27:05
Usually I hate the Today Show, but today's SNL skit tribute was actually pretty good. Made me smile. Tho not sure $JCP will like Mom Jeans.
Stockaholics
31 Oct 14 04:26:30
Our Penny Stock Newsletter Alert On MGON Closed up 112.5% Today! Major News: http://t.co/gDCrqEFOy6 $JCP $AQUM $WSGI
Penny Stock Secret
31 Oct 14 04:03:42
The Hottest Way to Make Millions From Stock Market.Click HERE http://t.co/SVqoMkrw2z .. $JCP $AQUM $WSGI
Stockaholics
31 Oct 14 00:21:45
Our Penny Stock Newsletter Alert On MGON Closed up 112.5% Today! Major News: http://t.co/dvxYQnSJab $JCP $AQUM $WSGI
DailyStockPicks
30 Oct 14 23:31:42
Partner Jet $PJT.V is up 183% this week after Q3 release with more gains coming. Find out why: http://t.co/MEpEjkCm4H $JPM $JCP $APC
Buttercup $BABA91914
30 Oct 14 19:52:06
“@MarketWatch: Some of the sneaky ways stores keep tricking customers: http://t.co/Q3sZLUXk9j http://t.co/u0NDGR90kq” #shopping $JCP $KSS $M
P. Ricatti
30 Oct 14 19:47:08
@pricatti comparto el fracaso con Soros que estuvo comprando en 1Q14. Entre oro, plata y $JCP sus peores inversiones http://t.co/ezxL378Esz
Stockaholics
30 Oct 14 17:16:53
Our Penny Stock Newsletter Alert On MGON Closed up 112.5% Today! Major News: http://t.co/dvxYQnSJab $JCP $AQUM $WSGI
Dr. Tom Jerry
30 Oct 14 15:15:39
@mikeo188 if ur r gonna use this logic then why not $JCP loss for #ackman? $HLF
Stock Moo
30 Oct 14 15:02:25
$jcp: J. C. Penney Company, Inc. to Report Third Quarter 2014 Financial Results on November 12, 2014 at 4:00 p.m. ET http://t.co/jLSakPDDOX
Stock Moo
30 Oct 14 14:02:15
$jcp: J. C. Penney Company, Inc. to Report Third Quarter 2014 Financial Results on November 12, 2014 at 4:00 p.m. ET http://t.co/1j6Z3K4TH7
BV Services
30 Oct 14 13:31:59
$JCP J. C. Penney Company, Inc. to Report Third Quarter 2014 Financial Results on November 12, 2014 at.. http://t.co/qDyYr2HUEc
$Stocknewsalerts
30 Oct 14 13:31:51
$JCP J. C. Penney Company, Inc. to Report Third Quarter 2014 Financial Results on November 12, 2014 at 4:00 p From our Stock News Alerts App
charlie
30 Oct 14 13:04:11
Cut $WB b/e $SUNE 18.95 -2.3 $JCP b/e
Seeking Alpha
30 Oct 14 11:22:42
Kohl's: Time To Shop Elsewhere http://t.co/QjfrdCJER0 $JCP $M $KSS
Mark Trader
30 Oct 14 11:20:48
$ELED finally breaking out of pattern. This one has a history of making big moves. $ZNGA $EGO $BLTA $JCP $ARAY $NVAX $GGB $AU $GFI $APT $SD
Btek02
30 Oct 14 11:15:30
@jeffereytweets I haven't looked at $jcp. Doing well also? Yeah markets rallied hard. Do you understand all this broke shit going on today?
Sterne Agee
30 Oct 14 11:13:18
J C Penney Company Price Target Cut to $8.00 $JCP @SterneAgee http://t.co/UJAJCvuthV
Jeff
30 Oct 14 11:11:33
@Btek02 like I said buy the dip markets rally hard $spy $jcp
Jeff
30 Oct 14 09:44:17
$jcp maybe they will finally let this run next week appears they want this to stay here and not run up to test the 200 day sss next week
Jeff
30 Oct 14 09:13:26
Over the next 3 yrs $jcp stock is going outperform $m $kss $tgt $wmt it is a buy here with both fists
Stock Moo
30 Oct 14 09:02:19
$jcp: Black Friday starting earlier and earlier—Amazon and Kohl’s join the fray http://t.co/jUWBbWKwTV
Jeff
30 Oct 14 08:35:19
$jcp if there were an LBO it would probably be hostile as the board would want $15-16 as a starting price to even discuss a sale
Jeff
30 Oct 14 08:33:21
$jcp $8.53/shr in tangible book value, when they execute on their turn around this will be $15 in a blink and $30 in 3 yrs
Alexander Morris
30 Oct 14 08:14:43
$JCP: Exc 1DyHIGH=7.60, hits:3, ch:+0.3%, phNearCl:BrkPLo+PHi[+200.4%], tf:0111101, BigFlt:291M, HiPctSht[30%:4d], DyVol:2.5M:0.2x:0.1x
Teddy Vallee
30 Oct 14 07:48:36
RT @HedgeyeRetail: For those keeping score, $JCP gave us 10x more information in its Analyst meeting last month in just 3 hrs, than $KSS di…
charlie
30 Oct 14 06:37:40
Took down some $JCP 7.65
Jeff
30 Oct 14 06:11:20
RT @HedgeyeRetail: For those keeping score, $JCP gave us 10x more information in its Analyst meeting last month in just 3 hrs, than $KSS di…
Julian Close
30 Oct 14 06:08:31
Critical Alerts for $GE, $AMED, $RFMD, $JCP and $SCTY from InvestorsObserver today: http://t.co/EHaJHmKHm7 #OptionsTrading #CoveredCalls
Investors Observer
30 Oct 14 06:08:30
Critical Alerts for $GE, $AMED, $RFMD, $JCP and $SCTY from InvestorsObserver today: http://t.co/jrDQWEC2fy #OptionsTrading #CoveredCalls
Alan Robinson
30 Oct 14 06:00:17
@BrianSozzi @JeffMacke #USPS largest customer now is $AMZN with $JCP & $M also big $QVCB & $HSNI also quite sizable
Alan Robinson
30 Oct 14 05:50:41
@JeffMacke @BrianSozzi $urbn $M & based on mobile sales data $JCP $TGT $WMT have a shot to be on line powers but all far off now
Brynne Parrott
30 Oct 14 05:36:17
Peeps aren't only buying $AAPL products for Christmas. I'm buying my Aunt Fanny a sweater from $JCP
Hedgeye
30 Oct 14 05:35:25
RT @HedgeyeRetail: For those keeping score, $JCP gave us 10x more information in its Analyst meeting last month in just 3 hrs, than $KSS di…
Brian McGough
30 Oct 14 02:20:03
For those keeping score, $JCP gave us 10x more information in its Analyst meeting last month in just 3 hrs, than $KSS did yesterday in 7 hrs
Stockaholics
30 Oct 14 02:07:59
VIICQ Closed up 75% Yesterday! Special Update: http://t.co/8A33lxh1RR $JCP $AQUM $WSGI
WallStreet Pennies
30 Oct 14 01:52:39
Dollar$OnPennies: $JCP Gallery View http://t.co/tlzSwRJTSo
4-traders.com
29 Oct 14 22:40:27
Hot fashion for cooler days http://t.co/kxMEH38cX8 $SHLDV $JCP $PLCE
Stockaholics
29 Oct 14 22:08:45
$MLCG closed up 166.67% today! Huge News: http://t.co/JxSMla9Afn $JCP $AQUM $WSGI
Stockaholics
29 Oct 14 18:11:40
$MLCG closed up 166.67% today! Huge News: http://t.co/JxSMla9Afn $JCP $AQUM $WSGI
Marc Hav FX
29 Oct 14 13:55:31
$JCP J.C. PENNEY COMPANY INC. (UPDATED 29OCT2014) http://t.co/orC0z1LlhR
Marc Hav
29 Oct 14 13:55:30
$JCP J.C. PENNEY COMPANY INC. (UPDATED 29OCT2014) http://t.co/92iFwejHtE
Samuel Brown
29 Oct 14 13:32:21
$JCP One Reason J.C. Penney (JCP) Stock Is Down Today http://t.co/WT15hNhAgV
browns
29 Oct 14 13:18:23
$JCP basing
Jeff
29 Oct 14 12:59:31
Which $jcp analyst will come out & raise their target on $jcp to outperform & raise their PT to $12-15? $30 in 3 yrs
Blue Horseshoe
29 Oct 14 12:43:18
Poll of the day. Which dept. store sales guidance is more believable through 2017? $JCP +MSD or $KSS +2.5%?
Michael A. Levin
29 Oct 14 12:40:34
RT @philwahba: Kohl's Oct. sales "softer than expected", expects comp sales -1.4% this qtr- this after $JCP and Gap reported poor Sept $KSS…
Mark S Boone
29 Oct 14 12:37:51
$JCP Nice. I like that little Doji. Looking for a comfortable close. JMO.
Alexander Morris
29 Oct 14 12:34:13
$JCP: Exc 1DyHIGH=7.56, hits:5, ch:+1.9%, AtPivR1, tf:0111011, HiPctSht[30%:4d], DyVol:11.12M:0.7x:0.5x, DyRng:2.8%:0.8x:0.6x
				
				
By  +Follow January 15, 2014 6:03PM
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