Days after filing for bankruptcy, JC Penney says it plans to close more than a fourth of its stores.
According to a document filed with the Securities and Exchanges Commission on Monday, approximately 29 percent of the retailer’s 846 stores, or 242 locations, will close between the current fiscal year and next fiscal year.
For the current fiscal year, which ends in February 2021, 192 stores are expected to close, and then 50 more in 2022, the document notes. After the closings, the company will have 604 locations.
“The approximately 604 future store fleet represents the highest sales-generating, most profitable, and most productive stores in the network,” JC Penney said in the SEC filing.
JC Penney filed for bankruptcy reorganization Friday, making it the biggest retailer to do since the coronavirus pandemic forced stores to temporarily close. After announcing bankruptcy, the company said its physical stores and online sales operations will stay open during restructuring.
CEO Jill Soltau said last week that JC Penney’s leadership made significant progress toward rebuilding the company, but the coronavirus closures showed them they must eliminate debt in order to fully revive the company. She said bankruptcy “is the best path to ensure that JC Penney will build on its over 100-year history to serve our customers for decades to come.”