JC Penney to Close 33 Stores, Cut 2,000 Jobs
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JC Penney Co. plans to close 33 stores and eliminate about 2,000 jobs to help save $65 million a year as CEO Mike Ullman tries to turn around the money-losing department-store chain.
The closings and cuts will result in pretax charges of $26 million in the fourth quarter and $17 million in future periods, the Plano, Texas-based company said in a statement.
Mr. Ullman, who returned in April to replace Ron Johnson, has restored promotions, brought back popular private-label brands and reinstated commissions for some salesmen while ending his predecessor’s strategy of remodeling the stores into collections of boutiques. The chain has gone nine straight quarters without a profit, and analysts surveyed by Bloomberg are estimating it will post a $207 million loss for the current quarter.
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