A beloved mall retailer now announces unexpected layoffs in Texas as it prepares to axe nearly 300 employees in two phases this year.
In a significant move reflecting the evolving retail landscape, JCPenney, the Plano-based department store chain, has announced the closure of its Alliance Regional Logistics Center in Haslet, Texas, resulting in the layoffs of 296 employees.
The decision, detailed in a Worker Adjustment and Retraining Notification (WARN) letter submitted to the Texas Workforce Commission on June 3, marks another chapter in the retailer’s ongoing efforts to streamline operations amid financial challenges and a shifting market.
The facility, located at 1701 Intermodal Parkway, is set to close on or around November 1, 2025, with layoffs occurring in two phases: 42 workers will be let go between August 1 and August 14, and the remaining 254 will be released between November 1 and November 14.
“JCPenney is always seeking ways to adapt and enhance our operations with the goal of providing a better experience for our customers,” the company stated in a release to the Dallas Morning News.
“After a thorough review of our organization, we’ve made the difficult decision to close our JCPenney Alliance Regional Logistics Center.”
The statement underscores JCPenney’s focus on operational efficiency as it navigates a retail environment increasingly dominated by e-commerce and changing consumer preferences.
The Haslet closure comes five years after JCPenney filed for Chapter 11 bankruptcy in May 2020, a period that saw the retailer shutter over 200 stores nationwide.
Acquired by Simon Property Group and Brookfield Asset Management Inc. in December 2020, JCPenney has since reduced its footprint to approximately 650 locations.
Why are JCPenney Stores Closing?
The company’s latest move follows a reported 8% year-over-year sales decline in the quarter ending November 2024, highlighting ongoing financial pressures.
The Haslet facility, a 1.1 million-square-foot warehouse in a logistics hub alongside distribution centers for Amazon, Coca-Cola, and Michaels, has been a critical node in JCPenney’s supply chain.
Its closure will reduce the company’s supply chain network to eight facilities, though a nearby distribution center in Cedar Hill, Texas, will remain operational.
The layoffs will significantly impact the Haslet community, a small town north of Fort Worth.
Local leaders and economic analysts anticipate ripple effects on the regional economy, as the loss of nearly 300 jobs could strain families and reduce local spending.
JCPenney has pledged support for affected employees, stating, “While this decision was difficult, it was necessary to build a stronger, more competitive company.
We appreciate the contributions of all affected associates, who had been previously notified of our decision, and are committed to supporting them with transition resources, including severance and benefits.”
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A Retail Trend That Has Communities Buzzing
The closure coincides with JCPenney’s integration into Catalyst Brands, a new entity formed in January 2025 through a merger with Sparc Group, which owns brands like Forever 21, Aéropostale, Brooks Brothers, Eddie Bauer, Lucky Brand, and Nautica.
Catalyst Brands announced the opening of 1,800 store locations and the hiring of 60,000 employees, signaling ambitious growth plans.
However, a JCPenney spokesperson clarified to USA TODAY that the Haslet closure and recent store shutterings are unrelated to the merger, attributing them instead to “expiring lease agreements, market changes or other factors.”
Since the merger, JCPenney has closed eight stores nationwide—none in Texas—and reduced its corporate workforce by 5% in February and 9% in April, reflecting broader cost-cutting measures.
The Haslet closure is part of a larger trend of retail and logistics downsizing in 2025.
According to the Bureau of Labor Statistics, the warehousing and storage sector saw a 1.2% employment decline from May 2024 to May 2025, with 22,600 fewer workers.
Other retailers, like Kohl’s, are also scaling back, with the closure of a 500,000-square-foot e-commerce fulfillment center in Middletown, Ohio, affecting 768 employees.
In Texas, FedEx recently announced layoffs of 305 workers at a Fort Worth facility, further underscoring the region’s logistics sector challenges.
Despite these setbacks, JCPenney remains optimistic about its future under Catalyst Brands.
The company highlighted “numerous bright spots” in its first fiscal year as part of the joint venture, emphasizing efforts to adapt to a digital-first economy.
However, analysts question whether legacy retailers like JCPenney can regain relevance against e-commerce giants and direct-to-consumer brands.
The closure of the Haslet facility, while strategic, raises concerns about the balance between cost-cutting and maintaining a robust workforce.
For Haslet’s workers, the coming months will be a period of transition.
Community leaders are calling for job fairs and retraining programs to support affected employees, many of whom have been integral to the region’s logistics ecosystem.
As JCPenney continues to reshape its operations, the impact of these changes will be felt not only in Haslet but across the retail industry, where adaptation remains a critical challenge.
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