JCPENNEY has announced the bombshell closure of a beloved mall store that has served the community’s retail needs for the past 32 years.
As the popular spot – and oldest anchor store at the mall – prepares to shut down in the coming months, shoppers are already being greeted with signs announcing the news.
JCPenney has struggled to stay afloat in recent years amid industry wide challenges[/caption]
JCPenney confirmed its plans to shut down a popular mall location in the coming months[/caption]
JCPenney is one of the top department store chains in the country, with more than 650 spots in the US and Puerto Rico and billions of dollars in annual revenue.
However, the retail giant is facing a number of challenges in today’s harsh modern landscape, including declining sales and foot traffic, lingering debt from its bankruptcy in 2020, and major competition from rival department stores like Macy’s and Nordstrom.
JCPenney, once a stronghold in the retail industry, continues to face these hurdles and more, including attracting younger shoppers and navigating broader macroeconomic challenges like inflation and tariffs.
The retailer closed down a handful of stores in recent months as a result, and more than 200 spots have shuttered since its Chapter 11 bankruptcy filing a few years back.
JCPenney is adding to the list of axed stores, plotting to close down its location in the Westminster Mall in California by November.
The store, the oldest anchor at the 51-year-old shopping center, will be open to the public through November 16 and will close for good by November 21, per a Worker Adjustment and Retraining Notification, or WARN, letter.
The JCPenney will turn off its lights a week before Thanksgiving, with “store closing” signs already lining the entryways, customers told a local outlet.
All 76 employees will be impacted by the permanent closure in Westminster – roughly 25 miles from Los Angeles – including 19 cashiers, 16 sales floor associates, and the location’s general manager, per the WARN letter.
“Based on business needs and associates’ interests, it is anticipated that a few associates may be offered employment in other JCPenney locations,” the letter said.
“Closing the store was a difficult decision. We thank you for the time and effort you have dedicated to JCPenney,” it continued.
The JCPenney in Westminster opened its doors in 1993, replacing a Robinson-May store.
Once the location shuts down, just two JCPenneys in Orange County will remain, including one at the Brea Mall and the other at MainPlace Mall.
The store is currently hosting sales up to 20% off, according to shoppers on Reddit.
The U.S. Sun reached out to JCPenney for more information on the impending closure.
US braces for ‘45,000 store closures’
Some 45,000 bricks-and-mortar stores could close in the next five years, experts have warned.
Several major retailers have announced store closures or gone out of business altogether in recent years.
In 2023, chains such as Foot Locker announced plans to close up to 400 outlets by 2026.
While, other well-known retailers like Tuesday Morning and Mitchell Gold + Bob Williams filed for bankruptcy in 2023.
Bed Bath & Beyond has closed all of its brick-and-mortar stores and is now an online-only retailer.
The most affected retailers have been clothing, consumer electronics, sporting goods, hobby, book, music, and home furnishing stores since the start of 2019.
UBS has predicted the total number of retail stores will drop by 45k from 958k to 913k.
Despite that, the report says that certain stores should thrive while others decline.
It said retailers such as Walmart, Costco, Home Depot, and Target, could be among the winners.
DEPARTMENT STORE DUD
JCPenney has been struggling for years, filing for bankruptcy protection in 2020 due to a number of reasons, including compounding debt, years of plummeting sales, and failed turnaround strategies.
The company had been financially troubled for several years, and the pandemic accelerated these existing problems.
The nationwide lockdown forced JCPenney to temporarily shutter its stores, cutting off virtually all revenue.
The pandemic likewise propelled consumers’ shift toward online shopping, a trend that JCPenney failed to adequately capitalize on.
BRANDS HARD HIT BY BANKRUPTCIES
Many chains have struggled to adapt to a post-Covid retail landscape, with several companies filing for bankruptcy
JoAnn Fabrics and Crafts announced it would close all 800 stores after filing for bankruptcy twice in a year.
Hooters announced plans to file for Chapter 11 bankruptcy protection in February.
Liberated Brands announced that it would be closing all 122 retail locations for its boardsport fashion brands Quiksilver, Billabong, and Volcom.
Forever 21 shut down its headquarters after filing for bankruptcy and laying off 358 employees.
Macy’s announced major restructuring plans amid mass store closures.
With its revenue scarce, the company missed multiple debt payments in early 2020, ultimately pushing its bankruptcy filing.
However, a new chapter for JCPenney began earlier this year when the retailer merged with Sparc Group – the operator of popular brands such as Eddie Bauer and Aéropostale – to form a new entity called Catalyst Brands.
This move positioned the struggling department store within a larger portfolio of iconic brands, including Brooks Brothers, Lucky Brand, and Nautica.
JCPenney is not the only retailer that has struggled to stay afloat.
For example, a home goods retail chain confirmed its September 30 closing down date for 30 stores – and launched everything must go sale.
Plus, a popular mattress retailer filed for bankruptcy after almost 30 years and revealed all 15 locations will close for good.
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