A famous mall retailer is now closing four more locations as it has struggled to stay afloat amidst its resurrection from bankruptcy.
JCPenney closed about 20% of its stores as part of its 2020 bankruptcy.
But the chain, which operates 633 stores — most of which are mall anchors — has continued to struggle under its new ownership, reports TheStreet.
Sales have been dropping significantly.
The company’s fourth-quarter net income fell 8.9% to $41 million and net sales dropped 5.9% from a year earlier to $2.3 billion, according to a Securities and Exchange Commission filing.
Sales dropped 8.9% for the full year to $6.9 billion with net income dropping more than 86%.
At the time, the company hinted at making some cost-saving changes.
“We are carefully managing risk to ensure the stability of our business if the retail environment is challenged in the balance of 2024,” the chain said in an email to RetailDive.
While J.C. Penney executives have talked about the opportunity to open more stores, the company has actually decided to close four locations.
“Regretfully, we are unable to continue our current lease terms for these store locations and have been unable to find suitable locations in the market,” the company said in a media statement.
“We are grateful to our dedicated associates and the loyal customers who have shopped at these locations throughout the years.
We continue to work to make every dollar count for America’s diverse, working families and welcome them to shop at our other JCPenney stores in the area and at JCPenney.com.”
The four locations are anchor stores at the Shoppes at Bel Air in Mobile, Ala., Sikes Senter in Wichita Falls, Texas; and Elm Plaza in Waterville, Maine.
The JCPenney at the Westfield Annapolis Mall in Annapolis, Md., will close in 2025, according to RetailDive.
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Also Read: An Unexpected Retailer Is Now Closing All Stores in Illinois
Other Economy News Today
An unexpected restaurant now abruptly closes 7 locations in one state after revealing plans to shutter a total of 36.
TGI Fridays is closing a total of seven restaurants in one state as part of the company’s ongoing growth strategy.
This comes after the chain abruptly closed 36 locations across 12 states in at the beginning of the year, per The-Sun.
The restaurant chain will pull the plug on seven locations across the state of New Jersey in the coming weeks.
Today, Fridays will welcome in famished diners at its location in Brick for the final time.
“As we continue along our path of transformation to revitalize the Fridays brand and implement a long-term growth strategy, we see a bright future for TGI Fridays,” said Weldon Spangler, CEO of TGI Fridays earlier this week.
“We are at the helm of a pivotal moment that will allow us to explore boundless advancement, expansion, and innovation to keep delivering ‘That Fridays Feeling’ that our fans know and love.”
Before the closures, TGI Fridays had about 270 US locations, according to the company’s website.
“As part of the store closures, TGI Fridays is offering more than 1,000 transfer opportunities, which represents over 80% of total impacted employees,” the company previously said in a statement.
“Our top priority has always been delivering a superior experience for each and every TGI Fridays guest, and we’ve identified opportunities to optimize and streamline our operations to ensure we are best positioned to meet – and exceed – on that brand promise,” said Ray Risley, US president and chief operating officer, in the release.
Eight other locations were sold to former CEO Ray Blanchette, a longtime stakeholder who will acquire the previously corporate-owned restaurants.
The sale comes as major changes have been made to the brand’s leadership, including the news of Weldon Spangler being made CEO.
“As we continue along our path of transformation to revitalize the Fridays brand and implement a long-term growth strategy, we see a bright future for TGI Fridays,” said Spangler in a statement.
Also Read: Retirees Will Now Receive More Money For Social Security
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