J.C. Penney Co. Inc. said it will be closing 33 underperforming stores across the country, eliminating 2,000 jobs, as part of its turnaround efforts.
None of the stores are in Texas. Penney has roughly 1,100 stores nationwide.
The closures are expected to save the company $65 million annually beginning this year. In connection with the initiative, Penney (NYSE: JCP) also expects to incur estimated pretax charges of $26 million in the fourth quarter of fiscal 2013 and approximately $17 million in the future.
Remaining inventory at the 33 stores will be sold over the next several months with final closings expected to be completed by early May. Eligible associates released from the company will receive benefit packages.
The Plano-based retailer still expects to open a new store later this year in Brooklyn, N.Y.
Closing stores are located in Alabama, California, Colorado, Connecticut, Florida, Iowa, Illinois, Indiana, Maryland, Michigan, Mississippi, Minnesota, Montana, North Carolina, New Jersey, Ohio, Pennsylvania, Tennessee, Virginia and Wisconsin.
"As we continue to progress toward long-term profitable growth, it is necessary to reexamine the financial performance of our store portfolio and adjust our national footprint accordingly," CEO Mike Ullman said in a company statement. "While it's always difficult to make a business decision that impacts our valued customers and associates, this important step addresses a strategic priority to improve the profitability of our stores and position J.C. Penney for future success."
Last year, J.C. Penney said it laid off 85 workers in February at its Plano headquarters, as it tried to dispel rumors that it had laid off 300 employees. In April 2012, the company laid off 600 employees in Plano and cut 350 jobs there in July.
J.C. Penney to Close 33 Stores Across The U.S.
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