Pandemic claims yet another retailer: J.C. Penney

[Omaha Steve]

Source: AP

By ANNE D'INNOCENZIO

NEW YORK (AP) — The coronavirus pandemic has pushed the storied but troubled department store chain J.C. Penney into Chapter 11 bankruptcy. It is the fourth major retailer to meet that fate.

As part of its reorganization, the 118-year-old company said late Friday it will be shuttering some stores. It said the stores will close in phases throughout the Chapter 11 process and details of the first phase will be disclosed in the coming weeks.

Penney joins luxury department store chain Neiman Marcus, J.Crew and Stage Stores in filing for bankruptcy reorganization. Plenty of other retailers are expected to follow.

“The coronavirus pandemic has created unprecedented challenges for our families, our loved ones, our communities, and our country,” said Penney’s CEO Jill Soltau in a statement. “As a result, the American retail industry has experienced a profoundly different new reality, requiring J.C. Penney to make difficult decisions in running our business to protect the safety of our associates and customers and the future of our company. “



FILE - In this May 8, 2020, file photo, a J.C. Penney store sits closed in Roseville, Mich. The coronavirus pandemic has pushed troubled department store chain J.C. Penney into Chapter 11 bankruptcy. It is the fourth major retailer to meet that fate. Penney said late Friday, May 15, 2020, it will be closing some stores and will be disclosing details and timing in the next few weeks. (AP Photo/Paul Sancya, File)


Read more: https://apnews.com/c1c81cf36150f0586993e8bd15410b10

[Turbineguy]

1. But they did manage to get bonus money

to the top people in the company...

[hamsterjill]

3. Exactly!

To hell with the little people who will lose their jobs, right?

It’s just not right, and as stupid as that sounds, I’m going to keep saying it.

[Igel]

4. What provision?

Because otherwise there's just this:

https://talkbusiness.net/2020/04/bankruptcy-looms-for-jcpenney-neiman-marcus-as-covid-19-threatens-retail-sector/

They're loans, anyway. I doubt that chapter 11 bankruptcy would come between a federal loan and repayment.

[Fullduplexxx]

2. Jcp has been having trouble

[marble falls]

5. Covid may be the last straw but its not the biggest reason.

[bucolic_frolic]

6. Department store implosion a long time phenom - where to shop now?

We had Hess's, which was quite a big deal in its day, and then BonTon. And malls with Macy's, Sears, Penney's. Sears was a little more union or blue collar.

Shopping was a seasonal, family event. The spring sales fliers would come in the mail, or in the Sunday papers. There was good choice, but not the plethora of everything imaginable today where no one knows what to wear or how to wear it.

Malls were a big event. Place to hangout, or a whole day out with familiy, lunch, dinner and all. Now we're all lounging around in our PJs typing in the living room.

Ok, I find value at TJX stores, and at Burlington Stores. I don't like the styling at Walmart or Target. I find Kohl's a tad midwestern. And Penneys hit or miss. So I'm left with Macy's, and online catalogs, Nordstrom's Rack, which is small and doesn't carry everything.

They've done it to shoes too. Brands bought and sold. I think there are a couple big players in private equity, then Bass and Wolverine. Look up you favorite shoe brands. They're almost all owned by someone else.

Key takeaway from the article at the link? Putting the company up for sale. It will become a brand marketed to other retailers. Like Martha Stewart. What is Penney's famous for? Plain pockets? Arizona Jeans? Surely not shoes.

[CozyMystery]

8. They are known for bath towels (by me)

The towels I paid a pittance for, compared to those at Lands End, lasted longer and did not fray along the edges.

I bought more of them lately, and I hope they are still good quality. The first batch is about 13 years old, still not frayed. True, they are not luxuriously thick, but I prefer thinner towels.

[bucolic_frolic]

10. That's true, Penney's always did have superior housewares department

pillows, bedding, small appliances, curtains. A good selection.

[SharonAnn]

9. Linens (sheets and towels), Draperies and window coverings, underwear and socks.

All excellent quality and very moderate pricing. Oh, and men's shirts.

[JI7]

17. I liked them for underwear and socks. Mainly they were decent quality with reasonable prices

There place to go if you needed some basics.

[paleotn]

21. Yep....

When I was growing up, it was either JC Penny....or...blast from the past for current and former Tennesseans...Harveys or Castner Knott. Occasionally Cain Sloan, but mom thought they were a bit pricey.

[left-of-center2012]

7. This has been coming to Penney's for a couple years n/t

[Baclava]

11. There go my cheap suits, bout all I remember buying there, lol

[PassingFair]

12. It's a Chapter 11 Re-org and long overdue.

They are going to close about 200-250 of 850 stores.
Probably most of the mall stores, to get out of expensive
leases.

I work as a Jewelry Associate at a free-standing store.
Our store has been profitable.
I hope my store stays open, but, who knows?

[JI7]

18. I think it would help to have non mall locations also

Maybe in shopping centers with Grocery stores or Costco or hardware and other types of places so people can take care of different shopping needs in one area.

Kohls has these types of locations. But I find JCP to have better quality.

[Duppers]

19. Got this email 2 days ago...

JCPenney's CEO Explains How the Company is Positioning for the Future

Dear Valued Customer,

I want to thank you for your continued loyalty to JCPenney as we navigate the unprecedented challenges brought on by the Coronavirus (COVID-19) pandemic. As you well know, the pandemic has changed day-to-day life and created a profoundly different reality.

Retailers have been hit especially hard by this economic environment, impacting our Company's ability to meet financial and operational objectives. That is why JCPenney has chosen to pursue a financial restructuring.

We believe this process will give us the financial strength to weather the pandemic and evolve our business while also reducing our debt and increasing our flexibility to better position JCPenney for the future. This will allow us to better serve you, our valued customer.

I want to assure you: JCPenney is NOT going out of business. JCPenney will continue to be one of the nation's largest apparel and home retailers. Our expansive footprint will still include hundreds of stores across the U.S. and Puerto Rico, as well as our online flagship store, jcp.com.

While our stores have been closed during the pandemic, we are now safely and gradually reopening across the country, based on state and local guidelines. Check here to see if a store near you is open, and for more information on the important health and safety measures we have put in place to help ensure a healthy shopping environment.

We remain dedicated to offering you an inspiring shopping experience with the value and quality you expect in both our stores and on jcp.com. We will continue to provide compelling merchandise and offer new services and innovations, including Contact-free curbside pickup at all open stores.

JCPenney has been part of America's communities for more than 100 years, and we look forward to serving our customers for another 100 years.

Thank you for being our valued customer.

Sincerely,

Jill Soltau
Chief Executive Officer
JCPenney

[vercetti2021]

13. It accelerated it

JCP was in trouble for many years due to bad business management. This just pushed it over

[yaesu]

14. I think most have been on thin ice before this & it seems like some have already been through

bankruptcy. Its hard for old school chain stores to stay profitable when competing with the likes of Amazon or walmart monopoly.

[LogicFirst]

15. NO - Not an accurate headline

JCP has been going out of business for a long time. The Pandemic was simply the excuse they needed to turn off the life support system.

[Recursion]

16. It's been a dead man walking for a while

Still, that's going to really hurt a lot of malls where that's the one surviving anchor store.

[bucolic_frolic]

20. A quick and easy expansion awaits the buyer

Take your pick and fill out your scenario. Amazon. Walmart. Nordstroms. Kohls. And the old rumor from way back, a European company which tried a few stores in the US and left - French super retailer Carrefour.

My guess is the 200 closings get split into many pieces. A few to some of the above, as well as a few supermarket chains. Some malls have become home to a Wegmans. Amazon by the way still has room for neighborhood expansion bricks and mortar. Food by home delivery that is not local will prove a difficult profit model over the long term.

[not_the_one]

22. I PERSONALLY got an email from CEO of J C Penny assuring me that they were NOT

going out of business.

Ok, it was a mass email that MILLIONS received, but whatever....

I think that Penny's started the down hill slide when they.... wait for it... stopped printing catalogues.

Old school, you say? Someone should look at the stats of sales from before and after stopping the catalogues.

I was a college administrator for almost 30 years. At some point I advanced to wearing dress shirts, suits and ties. In my early days I got almost all of them at Pennys.

I would actually try on the suits. But dress shirts.... once I knew the right neck size for Staffords (the company brand) I would shop from the catalogue.

My problem was that I would want a particular color dress shirt. I would go to their catalogue to the dress shirt section. Their layouts were spectacular, beautiful. I would end up getting 5 or 6 shirt, all different colors. Then I had to get the ties to match all the different colors.

Now if you go to their website, it does NOT present you will anything visually appealing. A shirt on a white background. NOT conducive to impulse shopping.

When I moved to Manhattan, Macy's became my go to place, if nothing else to support them as NYC's hometown department store that gave us the most spectacular 4th of July fireworks in the nation, along with the Thanksgiving parade. I was so proud they were such a part of American traditions I wanted to shop there to support them. I still go there every year for xmas, to their xmas shop on the 9th floor, and get xmas tree ornaments. The sales are incredible.

But I digress....

Pennys seemed to start to fail about the time the catalogues disappeared. If others shopped the way I did, because of the beautiful, glossy layouts, "saving" all that money from printing came back to bite them in the ass.

Bigly sad.

[heckles65]

23. I'll always have a soft spot for Penney's.

Their interiors were always bright, cheerful, optimistic. Their staff always seemed less harried than Wal-Mart's, who had those awful Blockbuster Blue vests.

I'd be very sorry to see Penney's go. I would dance on Wal-Mart's grave.

[totodeinhere]

24. I think they were on their last legs already. The pandemic may have hastened the process

but I don't think they would have lasted very long anyway.

[Steelrolled]

25. Another misleading doom and gloom headline

It took corvid-19 for me to realize how common this is.