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>>

  • Dwayne Johnson hosts 'Hercules' screening for NYC children

    Dwayne Johnson hosts 'Hercules' screening for NYC children

    Thursday, July 24 2014 10:30 PM EDT2014-07-25 02:30:48 GMT
    When he's not slaying three-headed beasts with his olive-wood club, Hercules carves out time for the little people. Dwayne "The Rock" Johnson treated fans from the Harlem Boys and Girls Club and Big Brothers Big Sisters NYC to an advance screening of his new film. I caught up with the larger-than-life action hero after the big surprise.
    When he's not slaying three-headed beasts with his olive-wood club, Hercules carves out time for the little people. Dwayne "The Rock" Johnson treated fans from the Harlem Boys and Girls Club and Big Brothers Big Sisters NYC to an advance screening of his new film. I caught up with the larger-than-life action hero after the big surprise.
  • The Big Idea

    Making New York City more energy efficient

    Making New York City more energy efficient

    Thursday, July 24 2014 10:20 PM EDT2014-07-25 02:20:19 GMT
    More than half the population of New York City rides public transportation to work. No other metropolis in this country even approaches that percentage or the MTA's total number of riders. For that reason, New York likely ranks as the most energy-efficient city in the nation. But what would it take to make the city even more energy-efficient or even self-sufficient?
    More than half the population of New York City rides public transportation to work. No other metropolis in this country even approaches that percentage or the MTA's total number of riders. For that reason, New York likely ranks as the most energy-efficient city in the nation. But what would it take to make the city even more energy-efficient or even self-sufficient?
  • Suffolk County jail warden is highest-paid muni worker in NY

    Suffolk County jail warden is highest-paid muni worker in NY

    Thursday, July 24 2014 6:48 PM EDT2014-07-24 22:48:14 GMT
    New York State NewsNew York State News
    The Empire Center for Public Policy reports 1,803 local government employees outside of New York City have been paid more than Gov. Andrew Cuomo's $179,000 salary in the past year. The report from the fiscally conservative group for the year ending March 31 shows 47 of the 50 highest-paid municipal employees working for police departments or sheriff's offices and each taking home more than $250,000.
    The Empire Center for Public Policy reports 1,803 local government employees outside of New York City have been paid more than Gov. Andrew Cuomo's $179,000 salary in the past year. The report from the fiscally conservative group for the year ending March 31 shows 47 of the 50 highest-paid municipal employees working for police departments or sheriff's offices and each taking home more than $250,000.
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