JC Penney Company recently announced it is aligning its workforce with its store optimisation strategy and reduced store footprint. It has identified 152 store closures following an evaluation of store performance and strategic fit for the company and reduce its workforce by approximately 1,000 corporate, field management, and international positions.
The US apparel and home retailer is negotiating with landlords as well. “Each of these associates has made valuable contributions to the legacy of JCPenney, and we are truly grateful for their service,” said Jill Soltau, chief executive officer of JCPenney in a press release.JC Penney Company recently announced it is aligning its workforce with its store optimisation strategy and reduced store footprint. It has identified 152 store closures following an evaluation of store performance and strategic fit for the company and reduce its workforce by approximately 1,000 corporate, field management, and international positions.#
“These decisions are always extremely difficult, and I would like to thank these associates for their hard work and dedication. We are committed to supporting them during this period of transition,” he added.
This organizational restructuring will create a smaller, more financially flexible company, and will help ensure JCPenney emerges from both Chapter 11 and the COVID-19) pandemic as an even stronger retailer, the press release said.
The company is providing a comprehensive benefits package for its departing associates.
As announced on May 15, JCPenney entered into a restructuring support agreement with lenders holding approximately 70 per cent of its first lien debt to reduce its outstanding debt and strengthen its financial position. To implement the financial restructuring plan, the company filed voluntary petitions for reorganization under Chapter 11 of the US Bankruptcy Code.
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