JCPenney announced it will close 33 stores in 20 states by May, a move the retailer says will save it $65 million in 2014. In the meantime, it will cost $26 million in the fourth quarter of 2013 and an estimated $17 million after that.
The stores closing will affect about 2,000 jobs. The stores to be closed are in Alabama (1), California (1), Colorado (1), Connecticut (1), Florida (2), Iowa (1), Illinois (2), Indiana (2), Maryland (1), Michigan (1), Minnesota (1), Mississippi (2), Montana (2), North Carolina (1), New Jersey (1), Ohio (1), Penssylvania (3), Tennessee (1), Virginia (2) and Wisconsin (5). For a complete list of the stores, click here.
CEO Mike Ullman said in a statement, “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. 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.”
JCPenney posted a wider third-quarter loss of $489 million in November, compared to the previous year’s $123 million loss.
CEO Mike Ullman returned to the struggling retailer last April after Ron Johnson’s turnaround efforts failed.
JCPenney operates approximately 1,100 stores.