This Iconic Department Store Will Close 165 Locations by Early Next Year

Lauren Gray
·4 min read
This Iconic Department Store Will Close 165 Locations by Early Next Year

Department stores were already struggling to weather the rise of online shopping, but the pandemic has put the final nail in the coffin for many major retailers. This week, one of the oldest and largest stores to crack under the pressure of the pandemic, JCPenney, announced that it will be closing a total of 165 stores by Mar. 2021. The news came shortly after the company had emerged from bankruptcy under new ownership earlier this month. Read on for more news about the stores JCPenney is closing, and for another potential closure to be concerned about, check out This Legendary Chain Is on the Verge of Bankruptcy.

Though over 150 JCPenney locations were already on the chopping block, new owners Simon Property Group and Brookfield Asset Management, Inc. announced that they will close an additional 15 stores in just over three months' time, leadership confirmed in a statement to USA Today this week.

"As part of our store optimization strategy that began in June with our financial restructuring, we have made the decision to close an additional 15 stores," JCPenney said in its statement. "These stores will begin liquidation sales later this month and will close to the public in mid to late March." JCPenney, which has been around since 1902, operated 840 brick-and-mortar locations before filing for bankruptcy in May of this year.

According to Forbes, much of JCPenney's troubles can be traced not to the current pandemic, but back to 2012, when the company came under the leadership of CEO Ron Johnson. Johnson dramatically restructured the company, including its inventory, marketing, and pricing strategy, alienating much of its core base and leading to a 24 percent sales reduction that year. This year, JCPenney's stocks fell below one dollar per share, which put it at risk of being delisted by the New York Stock Exchange.

Still, the new leadership remains optimistic that better days are ahead. "While store closure decisions are never easy, our store optimization strategy is intended to better position JCPenney to drive sustainable, profitable growth," representatives explained.

Read on for more stores like JCPenney that are closing their doors during the pandemic, and for another major store's closures, check out This Beloved Brand Is Closing All But 2 of Its U.S. Stores.

Read the original article on Best Life.

1

GameStop

GameStop store {Return Policies}
GameStop store {Return Policies}

GameStop may have been the largest video game retailer in the world, but it wasn't too big to fail. After struggling to adapt to changing consumer habits and making risky investments in roughly 1,500 mobile phone stores, the company amassed over $485 million in debt during the 2018 fiscal year alone. GameStop is now in the process of closing at least 1,000 store locations by Mar. 2021. And for another company on the brink, check out This Popular Clothing Chain Just Announced It's Closing 100 More Stores.

2

Francesca's

Francesca's department store
Francesca's department store

Francesca's was once a booming mall staple that catered to teens and 20-somethings. But now, the company has filed for Chapter 11 bankruptcy protection, and just announced plans to close an additional 97 stores on top of 140 closures already in the works since November. While the apparel chain's troubles are undoubtedly linked to the pandemic, it had also struggled before then with rocky changes in leadership and the shift to online shopping. And for more up-to-the-minute retail news, sign up for our daily newsletter.

3

The Children's Place

children's place
children's place

Popular purveyor of kids' apparel, The Children's Place usually makes its best sales of the year just before the start of the school year—but 2020 had something else in store. With schools shuttered, the company saw a 23 percent reduction in net sales for Oct. 2020, compared with the same month in 2019. They've recently announced plans to close a total of 200 stores by the end of this year. And for more on surprising pandemic closures, check out This Beloved Pet Store Is Closing All U.S. Locations.

4

Guitar Center

Guitar Center storefront in Santa Clarita, CA
Guitar Center storefront in Santa Clarita, CA

Guitar Center has been a permanent fixture in the music industry for more than 30 years, and its 30,000-square-foot store on Sunset Boulevard in Hollywood is legendary. The chain had been suffering in recent years and underwent a restructuring in 2018, but it wasn't enough to secure its footing to brace it for the wrath of the pandemic. In mid-November, Guitar Center announced that it was entering a restructuring deal to cut debt by $800 million. The company stressed that the plan is for business operations at its 300 stores nationwide to continue without any interruption during the restructuring. And for more on closures that might affect you, find out if Your Starbucks Could Be One of the 800 Closing for Good.