JC Penney Announces Store Closures, Layoffs
The retailer JC Penney announced today that it would shutter 40 US stores and lay off about 2,250 workers this year, with most of the cuts taking place over the next three months. Most of the closures would affect mall-based stores. The news followed reports of improved holiday season sales for the company, which is having a nascent rebound after a disastrous attempted rebranding under departed CEO Ron Johnson.
JCP shares are up about 7.5% versus a year ago, the AP reported. Last January, the retailer announced it would close 30 stores. The company currently operates 1,060 stores. Sales nosedived in 2012 following an attempt led by Johnson to move the mid-range department store chain away from its trademark promos, coupons and sales.