< >

 

J.C. Penney To Close Up To 140 Stores, Offer Buyouts

By

J.C. Penney plans to close up to 140 stores and offer buyouts to 6,000 workers as the department-store industry sags in competition with online sellers and nimble niche retailers.

The company said Friday that it would shutter 13% to 14% of its stores, representing about 5% of its annual sales, and two distribution centers.

The cuts come amid mounting challenges for once-stalwart department-store chains such as Macy’s and Sears, which are aggressively closing stores and shedding costs as shoppers flock to alternatives.

Penney expects to save $200 million in annual costs in connection with the plan but will record an initial pre-tax charge of $225 million to cover the closure costs.

Tags: ,

Welcome to LNC Live News Stream Cloud