Plano-Based J.C. Penney Company to Close 138 Stores, 9 in Texas | NBC 5 Dallas-Fort Worth

Plano-Based J.C. Penney Company to Close 138 Stores, 9 in Texas

    processing...

    NEWSLETTERS

    Plano-Based J.C. Penney Company to Close 138 Stores, 9 in Texas
    Getty Images, File
    File photo

    Plano-based J.C. Penney Company announced Friday they will close 138 stores, including nine in Texas, and two distribution centers "as part of a continuing effort to advance sustainable growth and long-term profitability."

    None of the affected stores are in the Metroplex; the closest stores slated for closure are in Athens and Stephenville. A complete list of affected Texas stores is below.

    • Athens Village Shopping Center, Athens
    • Borger Shopping Plaza, Borger
    • Heartland Mall, Early
    • El Paso Downtown, El Paso
    • Marshall Mall, Marshall
    • McAllen Downtown, McAllen
    • University Mall, Nacogdoches
    • King Plaza Shopping Center, Seguin
    • Bosque River Center, Stephenville
    • See the complete list of stores here

    The 138 closures will result in 5,000 jobs lost, though the company said they are in the process of "identifying relocation opportunities within the company for esteemed leaders." For those who will not be relocated, the company said they will provide outplacement support services "for eligible associates."

    All affected stores are expected to begin the liquidation process on April 17 and should close sometime in June.

    The closures, announced first in February, are expected to save the company about $200 million per year and represent about 13 percent to 14 percent of the company's current store count and less than 5 percent of total annual sales.

    In addition to the retail stores, the company said in February a distribution center in Lakeland, Florida will be closed and that a supply chain facility in Buena Park, California was being sold "to monetize a lucrative real estate asset."

    The news came last month as JCPenney posted a profit in the fourth-quarter compared to a loss a year ago. The company posted quarterly sales of $3.96 billion, down 0.9 percent from $3.99 billion a year ago.

    JCPenney is joining other department stores like Macy's who are shrinking footprints amid challenges in the industry. CEO Marvin R. Ellison mentioned the "threat" that online retail presents in a statement announcing the changes.

    "We believe closing stores will also allow us to adjust our business to effectively compete against the growing threat of online retailers," Ellison said in a statement in February.

    The company announced in February a voluntary early retirement program that about 6,000 employees are eligible for.

    “We understand that closing stores will impact the lives of many hard working associates, which is why we have decided to initiate a voluntary early retirement program for approximately 6,000 eligible associates. By coordinating the timing of these two events, we can expect to see a net increase in hiring as the number of full-time associates expected to take advantage of the early retirement incentive will far exceed the number of full-time positions affected by the store closures,” added Ellison.