JC Penney Store Closings 2020: More Locations Slated To Shutter Amid Bankruptcy Restructuring

JC Penney has expanded the number of stores that it is permanently closing after filing for bankruptcy in May. The company added two New York stores to its growing list of locations that will be shuttered, bringing the total number of announced store closures to about 150.

The stores that will be closed include a Brooklyn location in Kings Plaza and a New York store in the Manhattan Mall.

Liquidation sales have begun at several stores that were slated to close. Sephora shops inside JC Penney have also reportedly closed.

JC Penney filed for Chapter 11 bankruptcy in May after struggling with declining sales for years. The company was in the process of a turnaround plan when the coronavirus hit, forcing it to temporarily close all of its stores.

A month later, the department store retailer furloughed the majority of its workers. The company said in its bankruptcy filing that it had plans to close 242 underperforming stores as it looks to reduce its debt load and continue its retail operations.

JC Penney is using a phased approach to closing its stores as it previously announced that 137 stores would close, followed by another 13 stores in July. JC Penney had 846 stores within its portfolio.

Several suitors have shown interest in buying JC Penney. Amazon was reported to be evaluating JC Penney for an acquisition, while private equity firm Sycamore Partners was also thought to be courting the retailer. Sycamore Partners pulled out of a deal with L Brands to buy the Victoria’s Secret brand earlier this year as the coronavirus brought declining sales and store closures.

Due to COVID-19 restrictions, JC Penney is holding liquidation sales with safety measures in place. The company has reduced its hours to 11 a.m. to 7 p.m., Monday through Saturday and 11 a.m. to 6 pm. on Sundays. It is also regulating the number of shoppers inside its store at any one time to promote social distancing.