J.C. Penney to shutter 33 stores, slash 2,000 jobs - New York News

J.C. Penney to shutter 33 stores, slash 2,000 jobs

Posted: Updated:

J.C. Penney will fire 2,000 people and close 33 underperforming stores as part of a revamped turnaround plan it hopes will stem ballooning losses.

The struggling department-store chain said late Wednesday the move will generate annual savings of roughly $65 million beginning in 2014. Penney expects to incur charges of $26 million in the fourth quarter and $17 million in future periods related to severance and closure expenses.

"As we continue to progress toward long-term profitable growth, it is necessary to re-examine the financial performance of our store portfolio and adjust our national footprint accordingly," Penney CEO Mike Ullman said in a statement.

Shares of the retailer fell more than 2.5% to $6.83 in after-hours trade following the announcement. They have fallen more than 62% over the last 12 months.

The move comes nearly two months after the company reported a much deeper third-quarter loss on weaker-than-expected sales.

Penney says the remaining inventory in those stores will be sold over the next several months, with final closing anticipated by early May. It still plans to open a new store later this year in Brooklyn, N.Y.

  • Local NewsLocal NewsMore>>

  • NYPD Twitter hashtag backfires

    NYPD Twitter hashtag backfires

    Wednesday, April 23 2014 6:23 AM EDT2014-04-23 10:23:11 GMT
    A NYPD plan intended to better connect with the community seems to have backfired a bit. The police department asked its twitter followers to share pictures of themselves with New York City police officers using the hashtag "myNYPD." Some did share nice pictures, but others not so much.Some of the first pictures posted showed regular citizens standing with very friendly looking police officers.
    A NYPD plan intended to better connect with the community seems to have backfired a bit. The police department asked its twitter followers to share pictures of themselves with New York City police officers using the hashtag "myNYPD." Some did share nice pictures, but others not so much.Some of the first pictures posted showed regular citizens standing with very friendly looking police officers.
  • Caesars enters New York casino competition

    Caesars enters New York casino competition

    Tuesday, April 22 2014 10:52 PM EDT2014-04-23 02:52:22 GMT
    Caesars Entertainment entered the competition to open a casino in upstate New York on Tuesday with a proposal to build a $750 million complex 50 miles north of New York City. The complex would include a casino, a hotel and a meeting space and would be located in Woodbury, in Orange County. The Las Vegas-based Caesars, which operates 52 casinos around the world, has submitted a $1 million casino license application fee to state gambling regulators.
    Caesars Entertainment entered the competition to open a casino in upstate New York on Tuesday with a proposal to build a $750 million complex 50 miles north of New York City. The complex would include a casino, a hotel and a meeting space and would be located in Woodbury, in Orange County. The Las Vegas-based Caesars, which operates 52 casinos around the world, has submitted a $1 million casino license application fee to state gambling regulators.
  • Hoax 'swatting' call sends dozens of cops to LI home

    Hoax 'swatting' call sends dozens of cops to LI home

    Tuesday, April 22 2014 10:43 PM EDT2014-04-23 02:43:53 GMT
    Heavily armed police officers descended on a home in Long Beach, Long Island, Tuesday afternoon thinking they might find a grisly murder scene. Instead they found a terrified woman who had no clue what they were talking about and her teenaged son playing video games. "We received a phone call from a gentleman who stated he had just shot his mother and his brother," Long Beach Police Commissioner Michael Tangney said. "Unfortunately, this is a terrible national problem for law enforcement."
    Heavily armed police officers descended on a home in Long Beach, Long Island, Tuesday afternoon thinking they might find a grisly murder scene. Instead they found a terrified woman who had no clue what they were talking about and her teenaged son playing video games. "We received a phone call from a gentleman who stated he had just shot his mother and his brother," Long Beach Police Commissioner Michael Tangney said. "Unfortunately, this is a terrible national problem for law enforcement."
Powered by WorldNow
Didn't find what you were looking for?
All content © Copyright 2000 - 2014 Fox Television Stations, Inc. and Worldnow. All Rights Reserved.
Privacy Policy | Terms of Service | Ad Choices