JCPenney Closes Stores as Part of Restructuring Plan
Posted on January 24, 2011The J.C. Penney Company announced a series of restructuring plans today. The plans include closing certain underperforming store locations, the wind down of its catalog and outlet operations, and streamlining its Call Center operations and Custom Decorating business.
The actions the company is taking include closing five JCPenney department stores located in Morrow, Ga.; West Dundee, Ill.; Des Moines, Iowa; High Point, N.C.; and Culpeper, Va.; and one JCPenney Home Store located in Duluth, Ga. J.C. Penney says these six locations no longer meet the Company's profitability threshold.
J.C. Penney will also wind down its legacy catalog business, including exiting its catalog outlets. 19 outlet stores, which carry a significant amount of catalog merchandise, will be closed in 2011 and 20102.
Myron E. (Mike) Ullman, III, chairman and chief executive officer, said, "We are focused on increasing profitability and accelerating our growth. To achieve this, we undertook a thorough evaluation of our operations to ensure we are managing costs and allocating our resources to the strategies that will best drive both our top and bottom line, with the objective of delivering enhanced returns to shareholders."