JCPenney joins the long-list of American retailers like Sears, Macy’s, Kohls and several others when it announced that it would be closing 140 stores and providing buyouts for 6,000 of its employees. The closures represent between 13%-14% of its stores, responsible for 5% of its sales, and also include two distribution centers.
USA Today reported that the closures are expected to save JCPenney an extra $200 million in annual costs in connection with the plan it will record an initial pretax charge of $225 million to cover the closure costs.
[Related: The Limited Shuts Down All 250 U.S. Stores]
JCPenney also plans to provide “voluntary early retirement programs” to about 6,000 workers in its home office, supply chain and store.
JCPenney sales for stores open at least a year fell 0.7% in the fourth quarter, which includes the holiday season. Net sales were down 0.9% to $3.96 billion, while net income was $192, compared to a loss of $131 million a year earlier.