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J. C. Penney to close 33 stores, 2,000 employees to leave

Staff writer |
J. C. Penney Company said announced that as part of its turnaround efforts, the company will be closing 33 underperforming stores across the country.

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These actions are expected to result in an annual cost savings of approximately $65 million, beginning in 2014. In connection with this initiative, the company expects to incur estimated pre-tax charges of approximately $26 million in the fourth quarter of fiscal 2013 and approximately $17 million in future periods.

Remaining inventory in the affected stores will be sold over the next several months, with final closings expected to be complete by early May. The closings will result in the elimination of approximately 2,000 positions.

Eligible associates who do not remain with the company will receive separation benefits packages. Meanwhile, the Company is continuing its plans to open a new store location later this year at the Gateway II development in Brooklyn, N.Y.

"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," said Myron E. Ullman, III, chief executive officer of JCPenney.

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