- Prachi Singh |
J. C. Penney Company, Inc. is aligning its workforce with its store optimization strategy and reduced store footprint. The company said in a statement that JCPenney has identified 152 store closures following a comprehensive evaluation of store performance and strategic fit for the company and is having ongoing negotiations with landlords. In connection with this organizational realignment, the company has decided to reduce its workforce by approximately 1,000 corporate, field management, and international positions.
“These decisions are always extremely difficult, and I would like to thank these associates for their hard work and dedication. We are committed to supporting them during this period of transition,” said Jill Soltau, Chief Executive Officer of JCPenney, adding, “The global health and economic crisis caused by the Coronavirus pandemic has forced retailers to make difficult decisions. For JCPenney, that includes reducing our footprint and accelerating our store optimization strategy while we implement our Plan for Renewal.”
The company added that the organizational restructuring will create a smaller, more financially flexible company, and will help ensure JCPenney emerges from both Chapter 11 and the Covid-19 pandemic as an even stronger retailer. As announced on May 15, 2020, JCPenney entered into a restructuring support agreement with lenders holding approximately 70 percent of its first lien debt to reduce the company’s outstanding indebtedness and strengthen its financial position. To implement the financial restructuring plan, the company filed voluntary petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code.