Less than a month after J.C. Penney, one of the largest apparel and home retail stores in America, filed for Chapter 11 bankruptcy, the company issued a press release Thursday announcing the first phase of 154 store closures, which includes the River Landing Shopping Center location in Montrose.
According to the press release, the J.C. Penney Company, Inc. began the first phase of its store optimization strategy. Looking at the retail footprint and store performance along with the future outlook of locations for the company, J.C. Penney announced 154 stores will close. Once the company files an order at the June 11 hearing with the U.S. Bankruptcy Court for the Southern District of Texas, in Corpus Christi, Texas, closing sales are expected to begin on June 12 at those locations.
Other Colorado locations that are closing are in Durango, Fort Collins and Greeley.
Additional phases of store closing sales are expected to begin in the coming weeks. The company's decision to close the 154 stores is an effort to reduce its store footprint as they focus resources on the strongest stores and eCommerce flagship store, jcp.com. Closeout sales, which are set to begin late next week, are expected to take 10-16 weeks to complete.
"While closing stores is always an extremely difficult decision, our store optimization strategy is vital to ensuring we emerge from both Chapter 11 and the COVID-19 pandemic as a stronger retailer with greater financial flexibility to allow us to continue serving our loyal customers for decades to come," said Jill Soltau, chief executive officer.
The list of all the phase one store closures can be found on the J.C. Penney blog.
As the retailer reorganizes its finances through court-supervised proceedings, the company plans to close 240 stores — 192 by Feb. 2021, and another 50 by 2022.