NorCal JC Penney Stores Survive Nationwide Closure Of Dozens Of Stores, Loss Of 1000s Of Jobs
NEW YORK (CBS/AP) – JC Penney Co. announced the closure of dozens of stores nationwide, but California stores have been spared.
The company said the closure of about 40 of its stores will cost around $38 million.
Penney expects to complete most the store closures by April. A year ago, it announced plans to close 33 stores and cut about 2,000 jobs.
The company will cut about 2,250 jobs as it tries to improve its profitability. Earlier this week it started notifying workers at stores slated to be closed.
The department store chain said it will book pre-tax charges of $21 million in the fourth quarter of its fiscal 2014, and another $17 million will be incurred later.
The company, based in Plano, Texas, has about 1,060 stores. It has been trying to recover from a botched plan to reinvent itself under former CEO Ron Johnson.
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