JC Penney To Close Dozens Of Stores, Lay Off 2K Workers
DETROIT (CBS Detroit) J. C. Penney announced Wednesday that as part of its turnaround efforts, the company will be closing 33 underperforming stores across the country.
About 2,000 people will lose their jobs, according to media reports.
The only store in Michigan set to close is the one at Westwood Plaza in Marquette, according to the company. Closures are expected to happen in May.
Officials said the closures will save $65 million, beginning in 2014.
Remaining inventory in the affected stores will be sold over the next several months, officials said.
Meanwhile, the Company is continuing its plans to open a new store location later this year at the Gateway II development in Brooklyn, N.Y.
“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. (Mike) 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.”
According to the Chicago Tribune, the struggling department store chain has about 1,100 stores in the United States, and 116,000 employees as of February 2, 2013.