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>>

  • Andy Golub's NYC Bodypainting Day

    Andy Golub's NYC Bodypainting Day

    Wednesday, July 30 2014 10:43 PM EDT2014-07-31 02:43:52 GMT
    The saying art is autobiographical takes on a whole new meaning when your canvas is a fully nude human body, as it is for artist Andy Golub. Andy along with 30 other artists and 45 Technicolor models paraded around several Manhattan hotspots over the weekend for NYC Body Painting day. Believe or not, this is completely legal in New York City.
    The saying art is autobiographical takes on a whole new meaning when your canvas is a fully nude human body, as it is for artist Andy Golub. Andy along with 30 other artists and 45 Technicolor models paraded around several Manhattan hotspots over the weekend for NYC Body Painting day. Believe or not, this is completely legal in New York City.
  • Protestors rally against NYPD's 'broken windows' policing

    Protestors rally against NYPD's 'broken windows' policing

    Wednesday, July 30 2014 10:07 PM EDT2014-07-31 02:07:39 GMT
    Emotions about police brutality were still raw at a protest in Harlem Wednesday night. Eric Garner died after police put him in an apparent choke hold. Cops stopped garner for the minor offense of selling loose cigarettes in Staten Island. Officers had been enforcing the so-called broken windows policy.
    Emotions about police brutality were still raw at a protest in Harlem Wednesday night. Eric Garner died after police put him in an apparent choke hold. Cops stopped garner for the minor offense of selling loose cigarettes in Staten Island. Officers had been enforcing the so-called broken windows policy.
  • Fatal skydiving accident on Long Island

    Fatal skydiving accident on Long Island

    Wednesday, July 30 2014 9:13 PM EDT2014-07-31 01:13:49 GMT
    Police on Long Island say one person has died and another has been seriously injured in a skydiving accident. Riverhead police say it happened at about 4 p.m. Wednesday at Skydive Long Island in Calverton. Police say the injured person was airlifted to Stony Brook University Hospital in critical condition.
    Police on Long Island say one person has died and another has been seriously injured in a skydiving accident. Riverhead police say it happened at about 4 p.m. Wednesday at Skydive Long Island in Calverton. Police say the injured person was airlifted to Stony Brook University Hospital in critical condition.
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