As per the earlier reports, JCPenney was going to close a total of 8 locations around the country for multiple reasons. However, according to the latest announcements from the company, only one JCPenney store will keep operating through at least August. If you are someone who wants to know more about the JCPenney store closures, this article is for you. It brings you everything you need to know about the JCPenney that is going to close in May. The following article will also brief you on the possible reasons why JCPenney is going to close its 7 locations around the country.
JCPenney’s 2020 Chapter 11 Bankruptcy
The closures of the 8 JCPenney locations were announced in the month of February this year. It has also filed for Chapter 11 bankruptcy back in 2020 and closed over 200 locations for reconstruction. Simon Property Group and Brookfield Asset Management Inc. then acquired the chain in the month of December 2020.
JCPenney’s Partnership With Forever 21
In the month of January 2021, the retailer announced that it going to form a partnership with the famous fashion brand Forever 21 to form another company called Catalyst Brands. The merger also had other companies like Brooks Brothers, Aéropostale, Lucky Brand, Nautica, and Eddie Bauer involved. The company was expected to open at least 1,800 stores across the country and also hire 60,000 employees. However, a spokesperson from the company assured that the store closures announced in February do not relate to the Catalyst brand merger. The spokesperson also mentioned that the umbrella brand is planning to optimize its structure, which ultimately resulted in the cut of around 9% of its corporate roles.
What Locations Are Going To Close And When?
According to the reports that surfaced on the internet, the chain is all set to close a total of 7 locations all over the country. The company will shut these locations down by the 25th of May 2025. If you want to know whether the JCPenney store in your locality is closing or not, you may refer to the list given below.
- The Shops at Tanforan in San Bruno, California
- The Shops At Northfield in Denver, Colorado
- Pine Ridge Mall in Pocatello, Idaho
- West Ridge Mall in Topeka, Kansas
- Fox Run Mall in Newington, New Hampshire
- Asheville Mall in Asheville, North Carolina
- Charleston Town Center in Charleston, West Virginia
According to what JCPenney originally announced in the month of February, the company was also closing the Annapolis, Maryland location in May. However, according to the latest updates, the store, because of a lease extension order, is going to remain open till the 31st of August 2025.
Why Is JCPenney Closing The 7 Locations?
No specific reasons for the closures have been given since February. However, a spokesperson from JCPenney stated that various reasons, like expiring lease agreements, changing markets, and other factors, may have led to the closures. Online shopping and e-commerce have really severely impacted the retail industry. The foot traffic in physical stores, especially those located in malls, has witnessed a significant decline. In such a situation, it is a good decision to focus on the stores that are yielding maximum profits. The store located in Annapolis Mall got a lease extension, and it will now remain open through at least August. This means expiring lease agreements of stores located in various malls are also a major reason for the store closures.
