Retailer J.C. Penney announced plans to close 33 underperforming stores seeking $65 million in cost savings this year, while also eliminating about 2,000 jobs by May. The retailer released the list on Thursday (Jan. 16), none of the stores across Arkansas are slated for closure.
In connection with this initiative, the company expects to incur estimated pre-tax charges of approximately $26 million in the fourth quarter of fiscal 2013 and approximately $17 million in future periods.
Remaining inventory in the affected stores will be sold over the next several months, with final closings expected to be complete by early May.
Eligible associates who do not remain with the company will receive separation benefits packages. Meanwhile, the company is continuing its plans to open a new store location later this year at the Gateway II development in Brooklyn, N.Y.
"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," said CEO Myron E. (Mike) Ullman, III. "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."