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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
Trader News Daily
29 Jan 15 10:08:10
Wow http://t.co/PeRPkZkWiw just posted last weeks results. +429%. Crazy. They offer a free trial too. $SD $JCP $FNMA $MCP $DRYS $ZNGA
chartguy89
29 Jan 15 10:07:12
KATE Stock Chart $KATE $C $CAT $JCP http://t.co/n5TqTzoMhB http://t.co/l1S8aisjsi
iHangout
29 Jan 15 10:04:39
chartguy89: Stock Charts: SBUX Stock Chart $SBUX $KELYA $JCP $HYG http://t.co/xyoOv2vCfY
chartguy89
29 Jan 15 09:59:21
SBUX Stock Chart $SBUX $KELYA $JCP $HYG http://t.co/zzoBhHQBAb http://t.co/Lx6F5eg1uX
Investors Hangout
29 Jan 15 09:53:08
clayton: $JCP http://t.co/Wc4inmTIWa
Investors Hangout
29 Jan 15 09:53:08
clayton: $JCP http://t.co/dwBbXAe6bV
clayton
29 Jan 15 09:39:45
$JCP http://t.co/EUMh99cko4
Stock Signaling
29 Jan 15 09:31:03
Visual Stock Comparison Tool: http://t.co/S9oPUZ8PN3 : $TKMR $AKS $SNSS $YELP $NLNK $JCP $YHOO $JNS $LOCO $NFX $CRUS $AMBA #analyst #nasdaq
CushWakeLA
29 Jan 15 08:48:33
RT @Michael_MBA: Apple is a bigger bricks-and-mortar retailer than Penney and Gap http://t.co/4NTM9UgNQW $aapl $jcp $gps
BlackMarketExchange
29 Jan 15 08:39:04
$JCP Bounced off support around $7.14. Will it form a descending triangle to close the gap before earnings?
Cutlass
29 Jan 15 08:27:58
BLOCK TRADE: $JCP 300,000 shares @ $7.19 [11:16:33]
BlockTradeAlert
29 Jan 15 08:16:33
BLOCK TRADE: $JCP 300,000 shares @ $7.19 [11:16:33]
Jann Gobble
29 Jan 15 08:10:11
RT @MarkBoone17: $JCP Calm down and buy into the dip. Lord....you guys need to take your meds. It's end of the month, Yo! Gezz. Let it capi…
Jann Gobble
29 Jan 15 08:09:50
RT @MarkBoone17: $JCP Short drop of 4.2% The number dropped from 103,706,174 on Dec 31,2014 to 99,345,311 on Jan 15,2015. The final short i…
Chris Z
29 Jan 15 08:02:26
$JCP plan to watch for consolidation near this daily level at 7.14 for late afternoon break toward $7-680s
Chris Z
29 Jan 15 08:02:05
$JCP done with this. Out the rest at 7.12. Not a single green candle on the 15m chart so easy gains over.
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29 Jan 15 07:59:35
Check out our alert track record here... http://t.co/BdiZMRYWH1. Sign up is free. See you soon! $ODP $JCP $ACI $IAG $SD $AKS
Mark S Boone
29 Jan 15 07:50:15
$JCP Short drop of 4.2% The number dropped from 103,706,174 on Dec 31,2014 to 99,345,311 on Jan 15,2015. The final short interest is 33.1%.
Investors Hangout
29 Jan 15 07:49:43
Stock_Tracker: $JCP Company News Apple is a bigger http://t.co/Lv7MJa0jPf
Investors Hangout
29 Jan 15 07:49:41
Stock_Tracker: $JCP Company News Apple is a bigger http://t.co/eL4hWsDlNK
Clayton Gilman
29 Jan 15 07:49:23
$JCP stopped out 7.21 -10, back in 7.20
Stock Rocket
29 Jan 15 07:46:36
Thanks to the 5 pro traders at http://t.co/5jbX6mNKQv for an amazing week! My win rate was 80%. So sweet. $ANR $JCP $AU $HL
Chris Z
29 Jan 15 07:40:55
$JCP ultimate target on this today would like to see it hit $7, but may take $7.14 off daily low if it starts basing/grinding there
lookn4wins
29 Jan 15 07:40:32
$GS Current Price $GS Most recent stock chart and technical analysis. $GILD $JCP $IVV $ALGN $PAL $CSIQ http:// http://t.co/abJzgrNv0K
Stock_Tracker
29 Jan 15 07:40:03
$JCP Company News Apple is a bigger bricks-and-mortar retailer than Penney and Gap 4:51 p.m. Jan. 28, 2015 - A http://t.co/hIYa69qsiQ
Mark S Boone
29 Jan 15 07:31:15
$JCP Calm down and buy into the dip. Lord....you guys need to take your meds. It's end of the month, Yo! Gezz. Let it capitulate. JMO
Chris Z
29 Jan 15 07:26:06
$JCP no bounce at all. Awesome
Chris Z
29 Jan 15 07:16:33
$JCP covered a few more 7.28. Gonna let the remainder fade all day (hopefully, hehe)
Caesar
29 Jan 15 07:07:09
RT @laurenholmesNYC: $CANF Number #1 on Watchlist $AAPL $PKT $SONC $JDST $JCP $TWTR Get our thoughts here http://t.co/VrsGMCgPOC
David Bell
29 Jan 15 07:06:51
“@Michael_MBA: Apple is a bigger bricks-and-mortar retailer than Penney and Gap http://t.co/ck1qcfTG05 $aapl $jcp $gps” $4,600/SF for 2014!
lookn4wins
29 Jan 15 07:02:01
$SH 200 Simple Moving Average $SH Most recent stock chart and technical analysis. $JCP $GILD $DDD $AAPL $AAL $ http://t.co/NHdwL0Ygbz
Clayton Gilman
29 Jan 15 06:54:40
$JCP stopped out 7.43 -5, back in 7.32 on the bounce
Chris Z
29 Jan 15 06:51:11
$JCP covered 1/2 7.35
Mark S Boone
29 Jan 15 06:46:27
$JCP Hmmm.....interesting little game going on....let's see if it turns out the way I think. GLTA
Chris Z
29 Jan 15 06:43:21
$JCP perfect
Chris Z
29 Jan 15 06:35:15
$JCP started short 7.49
Stockaholics
29 Jan 15 06:05:32
Our Penny Stock Picks On $IJJP $TUNG & $QLTS Gained 117% In 3 Days! New Pick Coming: http://t.co/c7bXDM1sfp $JCP $AQUM $WSGI
ProTradersNews
29 Jan 15 01:41:03
$JCP: J C Penney Company Inc Analyst Rating Update: http://t.co/okVZGkcscM
ProTradersNews
29 Jan 15 01:01:04
$JCP: JC Penney Company Inc Short Interest Disclosure: http://t.co/p3g7pIkC0z
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28 Jan 15 21:26:34
Our Penny Stock Picks On $IJJP $TUNG & $QLTS Gained 117% In 3 Days! New Pick Coming: http://t.co/zlcsLOoyXX $JCP $AQUM $WSGI
Petra Durnin
28 Jan 15 20:16:25
RT @Michael_MBA: Apple is a bigger bricks-and-mortar retailer than Penney and Gap http://t.co/4NTM9UgNQW $aapl $jcp $gps
NASDAQ
28 Jan 15 20:07:10
$JCP - How a Two-Tier Economy Is Reshaping the U.S. Marketplace http://t.co/wGH7rwy1AA
Stocks News&Markets
28 Jan 15 20:07:06
$JCP - How a Two-Tier Economy Is Reshaping the U.S. Marketplace http://t.co/hLbwp5GPBA
Michael
28 Jan 15 19:29:41
Apple is a bigger bricks-and-mortar retailer than Penney and Gap http://t.co/4NTM9UgNQW $aapl $jcp $gps
ProVesting
28 Jan 15 19:21:03
$AXP $DLPH $CCL $XRX $JCP $HD $DRI $GM: Thompson's Retirement at McDonald's Erodes U.S. Black CEO Ranks: http://t.co/SDSctcuhws
Cdn.Trader
28 Jan 15 19:00:56
RT @ckz8780: Watchlist for tomorrow: $TOUR $JCP $SRPT $CCj $HALO $EXEL
Cdn.Trader
28 Jan 15 19:00:33
RT @ckz8780: $JCP ideally a morning push toward 7.55-7.60 to short into. Risk to $7.77 and just let it fade all day, adding on pops
Chris Z
28 Jan 15 18:58:53
$JCP ideally a morning push toward 7.55-7.60 to short into. Risk to $7.77 and just let it fade all day, adding on pops
Chris Z
28 Jan 15 18:55:55
Watchlist for tomorrow: $TOUR $JCP $SRPT $CCj $HALO $EXEL
Ascah Conley
28 Jan 15 18:45:56
RT @mitchstock92 Big day thus far on retailers like $BBY $WMT $JCP $COST $DG $TGT and even $RSH is up!
				
				
By  +Follow January 15, 2014 6:03PM
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