Kimberly Do shops at JC Penney in Springfield, Va.
(Photo: H. Darr Beiser, USA TODAY)
J.C. Penney said Wednesday it will close 33 underperforming stores
and lay off 2,000 employees as the venerable but troubled retailer
continues a sweeping turnaround effort.
The company said the
closings will save about $65 million a year beginning in 2014. It will
take pre-tax charges of $26 million n the fourth quarter and $17 million
in the first quarter. The stores are expected to be closed by early
"As we continue to progress toward long-term profitable
growth, it is necessary to re-examine the financial performance of our
store portfolio and adjust our national footprint accordingly," says
company CEO Myron Ullman III.
Penney said the closings are part of
its turnaround, which began in April when Ullman returned to lead the
company. He's largely undoing the strategies implemented by former CEO
Ron Johnson who was pushed out after an overhaul that included
eliminating sales and promotions in favor of everyday low prices caused
sales to plunge.
Sales at stores open at least a year are up in
the fourth quarter after falling steadily the past couple of years,
notes analyst Kirk Ludtke of CRT Capital Group.
"I think he's done a good job of stabilizing the situation," says analyst Kirk Ludtke of CRT Capital Group.
embattled company's stock price is near a 52-week low. Penney made its
announcement after the close of regualr trading Wednesday. Shares are
down 1.1% in after-hours trading, to $6.93.
LIST OF STORE CLOSINGS
Selma, Ala. -- Selma Mall
Rancho Cucamonga, Calif. -- Arrow Plaza
Colorado Springs -- Chapel Hills Mall
Meriden, Conn. -- Meriden Square
Leesburg, Fla. -- Lake Square Mall
Port Richey, Fla. -- Gulf View Square
Muscatine, Iowa -- Muscatine Mall
Bloomingdale, Ill. -- Stratford Square Mall
Forsyth, Ill. -- Hickory Point Mall
Marion, Ind. -- Five Points Mall
Warsaw, Ind. -- Marketplace Shopping Center
Salisbury, Md. -- The Centre at Salisbury
Marquette, Mich. -- Westwood Plaza
Worthington, Minn. -- Northland Mall
Gautier, Miss. -- Singing River Mall
Natchez, Miss. -- Natchez Mall
Butte -- Butte Plaza Shopping Center
Cut Bank, Mont.
Kinston, N.C. -- Vernon Park Mall
Burlington, N.J. -- Burlington Center
Phillipsburg, N.J. -- Phillipsburg Mall
Wooster, Ohio -- Wayne Towne Plaza
Exton -- Exton Square Mall
Hazleton, Pa. -- LaurelMall
Washington, Pa. -- Washington Mall
Chattanooga -- Northgate Mall
Bristol, Va. -- Bristol Mall
Norfolk, Va. -- Military Circle Mall
Fond Du Lac, Wisc., Forest Mall
Janesville, Wisc. -- Janesville Mall
Rhinelander, Wisc. -- Lincoln Plaza Center
Rice Lake, Wisc. -- Cedar Mall
Wausau, Wisc. -- Wausau Mall
Paul Davidson, USA TODAY