MAY 6, 2021 — RESTRUCTURING CONTINUES, 650 LAYOFFS
The company’s new owners, Simon Property Group and Brookfield Asset Management laid off 100 people from their corporate staff and 550 employees in field operations.
Since exiting bankruptcy 34,000 employees have been laid off, 156 stores have been closed, with 18 additional store closures on May 16, 2020, and several distribution centers have been consolidated and eliminated.
Look for additional store closings and employee layoffs as restructuring progresses.
JANUARY 14, 2021 — 65 LAYOFFS AT FABRICATION CENTER IN STATESVILLE, NORTH CAROLINA
Driven by the decision to exit its In-Home Custom Window business, the company has announced the closure of its fabrication operation located at the company’s logistics center in Statesville, North Carolina. Other similar operations will also be shuttered.
JULY 29, 2020 — ACQUISITION BY PRIVATE EQUITY FIRM, MERGER, AND BRAND ABANDONMENT?
From published reports, it appears that the New York, New York-based private equity firm Sycamore Partners is offering to purchase the company for approximately $1.75 billion with the goal of merging the company with Charlotte, North Carolina-based department store chain Belks. The iconic JCPenny brand is likely to be abandoned.
Other bids are possible to capture the company. The next highest bid was $1.7 billion from the Hudson Bay Company which owns Saks Fifth Avenue.
JULY 16, 2020 — REORGANIZATION CONTINUES WITH 1,000 LAYOFFS AND STORE CLOSURES
The company has announced “that it is aligning its workforce with its store optimization strategy and reduced store footprint. JCPenney has identified 152 store closures following a comprehensive evaluation of store performance and strategic fit for the Company and is having ongoing productive negotiations with landlords.”
“Today’s announcement follows a lengthy, structured, and thoughtful decision-making process. In connection with this organizational realignment, the Company will reduce its workforce by approximately 1,000 corporate, field management, and international positions.”
“Each of these associates has made valuable contributions to the legacy of JCPenney, and we are truly grateful for their service. 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.”
This organizational restructuring will create a smaller, more financially flexible company, and will help ensure JCPenney emerges from both Chapter 11 and the Coronavirus (COVID-19) pandemic as an even stronger retailer. The global health and economic crisis caused by the Coronavirus (COVID-19) 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. As the retail landscape continues to evolve, we will continue to make thoughtful and strategic choices to Offer Compelling Merchandise, Drive Traffic, Deliver an Engaging Experience, Fuel Growth, and Build a Results-Minded Culture to ensure that JCPenney remains at the heart of America’s communities for decades to come.”
MAY 19, 2020 — STORE CLOSINGS CONFIRMED. 30% REDUCTION IN STORE FOOTPRINT
JCP has announced that they will reducing the number of stores from 846 to 604 by 2021. This will affect local store personnel, HQ support personnel, distribution centers, and contractor/vendors.
MAY 15, 2020 — JCP GIVEN TWO MONTHS TO ARRANGE AFFAIRS OR TAKE STRONGER ACTION. PERHAPS ALTERING ITS STRUCTURE
It appears that the Company that has filed a Chapter 11 bankruptcy case has been given a two-month deadline to explore alternatives. The company is considering spinning off into two public companies, a reduced sized retailer with manageable debt and a real estate investment trust to hold and manage its real estate holdings. This is known as the SEAR’S option which has worked for those who control Sears, but not so much for other investors — and certainly not Sear’s employees. The third option is a sale to another entity. most likely a private equity fund or outright liquidation.
APRIL 27, 2020 — JCP ACTIVELY EXPLORING CHAPTER 11 BANKRUPTCY AND SEEKING ADDITIONAL FINANCING
It appears that JCP is speaking with its major lenders to provide interim “debtor in possession” funding while the company seeks to restructure its operations and debt load.
Playing both sides of the road, the company is also seeking private equity and capital to allow them to increase leverage against their bank creditors during bankruptcy.
There is no doubt that the company has been crippled by the coronavirus and it remains to be seen if its financial problems can be addressed in a timely manner.
JANUARY 20, 2020 — JCP TO CLOSE 6 MORE STORES AND CLOSE ITS LENEXA, KANSAS CALL CENTER WITH 243 LAYOFFS
J.C. Penney announced that they will close six locations by April 24, 2020, as well as closing their call center in Lenexa, Kansas. A company spokesperson noted, “the decision is part of the company’s annual review of its 846 stores and other operations and a careful and ongoing review of our store portfolio. It’s never easy to close a store; however, we feel this is a necessary business decision. The call center decision was made in order to centralize call center operations and deliver streamlined service to our customers.”
FEBRUARY 22, 2018 — Original post…
It should be no surprise that J.C. Penney, a retailer who is closing 138 stores, would also adjust their warehousing, logistics chain, and customer service call center by closing their Wauwatosa, Wisconsin facility with a loss of 670 workers. It is also no surprise that the 2-million square feet facility would morph into a real estate play and sold to a private developer or possibly to the municipality to develop.
Also it would be expected for a company spokesman to mouth the obligatory words, in this case Carter English who was quoted as saying ““It’s never easy taking actions that directly impact our valued associates, however, we feel this is a necessary business decision. Eligible associates will receive separation benefits, including outplacement support and an on-site career training class.”
Considering the reduction in mall traffic, affecting other retailers like Sears, Macy’s. According to media sources over 9,000 stores were closed in 2017 – primarily driven by the pricing, convenience, and fast-delivery from mega-stores like Amazon and Walmart. In addition to the layoffs, the company is said to be offering a voluntary retirement program to about 6,000 employees across the company to avoid layoffs.
Change is coming. There will always be a tomorrow, no matter how much you may try to ignore it. There are no guarantees in life or promises for a bright future. Just because something bad hasn't happened yet, doesn't mean it won't. It can happen to anyone, anytime, anywhere. No one is guaranteed to wake up tomorrow and still have a job by evening. Are you now wondering, Am I Next?
