Struggling J.C. Penney to Shut Stores in Cost-Cutting Move

J.C. PenneyJ.C. Penney (JCP) said it will close some of its department stores, call centers and outlet stores in a bid to cut costs.

The struggling retailer will shut five department stores in locations including Morrow, Ga., and West Dundee, Ill., the company said in a statement. It will close a total of 19 outlet stores, as well as its call center facilities in Grand Rapids, Mich., and Albuquerque, N.M.

"The actions we are announcing today are significant steps in an ongoing process to ensure we are best managing costs and allocating our resources effectively," said CEO Myron E. Ullman.

J.C. Penney will initiate these actions over the course of 2011. The company will incur one-time charges of about 8 cents per share in the fourth quarter of fiscal 2010 and 5 cents per share in 2011 as a result of the transition. In 2012, the company expects a positive impact of 7 cents per share.

Also Monday, the company agreed to name activist investor William A. Ackman, founder and CEO of Pershing Square Capital Management, and Steven Roth, chairman of the board of Vornado Realty Trust, as directors.

Shares rose more than 3% in premarket trading.

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colosup

call centers going to India?

January 24 2011 at 4:20 PM Report abuse rate up rate down Reply
binniesoup

I've been in the apparel industry for over 20 years & always dealt with JCP. They, as well as many other retailers, over-extend themselves by opening numerous new stores & then wind up having to close stores to try to get themselves out of trouble. Sometimes less is more. I've also seen a big change in their prices. They are trying to become more upscale, but I don't it's working out for them.

January 24 2011 at 2:57 PM Report abuse +1 rate up rate down Reply
bohemianacres

In the past I always bought the vast majority of my clothing at the local J.C. store. However, a few years ago, taking in my 10 percent off coupon I had received in the (junk) mail, I had a big awakening when I did not get the 10 percent off my underwear, T-shirt, tie, shirt and gloves purchase. I found out the coupon had all these items as exceptions IN THE FINE PRINT. When I looked closer, there were over 30 exceptions to the 10 percent IN THE FINE PRINT. And the exceptions were not just individual items, they were general items like "2 or more" and "Levi's". After that rather embarrassing scene (there were other customers waiting in line), I went home and began to check future coupons for exceptions. All had them, except the "No Exclusions!" sales, on the items of clothing I would usually buy there. However, I have not gone back since that first embarrassing moment. I just don't trust them. I have taken my business elsewhere, and yes, I have discontinued my Penney's Card too. They can fold as far as I am concerned.

January 24 2011 at 10:53 AM Report abuse +2 rate up rate down Reply
adofilli

Another OBAMA casualty---

January 24 2011 at 10:42 AM Report abuse +4 rate up rate down Reply
1 reply to adofilli's comment
jcclsc

Maybe you think he should have bailed them out. Idiot.

January 24 2011 at 2:50 PM Report abuse rate up rate down Reply
kv37

Sounds like the beginning of the down for jcpenney. Can you say monkey wards.

January 24 2011 at 8:07 AM Report abuse +2 rate up rate down Reply