JCPenney said Wednesday it would cut about 1,000 jobs and close 152 stores as the department store chain appears to emerge from the protection of Chapter 11 and the COVID-19 crisis.
The layoffs would affect corporate, field management, and international roles, and eligible outgoing employees would receive a severance package. The company is also in talks with its owners about store closings.
Founded by James Cash Penney at the turn of the century in Wyoming, JCPenney has gone through countless bets to bring it under economic stress. In the 1990s, JCPenney dominated retail with a massive catalog designed for shoppers looking for affordable styles. It was one of the first companies to start selling online. But with the rise of online shopping, the company struggled to find its identity as competition increased.
JCPenney, which operated 850 stores in the US and Puerto Rico before the bankruptcy, entered the pandemic with falling sales and a $ 3.7 billion debt load. Its annual sales have plummeted in recent years, and its revenue has fallen more than 40 percent since 2007.
Penney filed for bankruptcy protection in May, with plans to explore a possible sale, joining a series of brick and mortar retailers to crumble under pressure from the COVID-19 pandemic.
On Tuesday, Calvin Klein owner PVH Corp. also announced a reduction in the number of office employees.
