J.C. Penney Will Close Torrington Location

TORRINGTON — J.C. Penney announced Thursday it would close its Torrington location and 153 other stores across the country next week. The company is calling the closures the first phase of its efforts to downsize; as part of its bankruptcy reorganization, J.C Penney plans to close nearly a third of its 846 retail stores in the next two years, leaving just under 600 locations.

The Torrington store will be the only Connecticut J.C. Penney to close.

The retailer said it could take about 10 to 16 weeks to complete the closures. It has been laden with debt and the issue of shoppers not coming out to the mall and choosing to shop online.

JCPenney Provides Update on Store Optimization Strategy

Identified First Phase of 154 Store Closures; Closing Sales Expected to Begin June 12, 2020

Additional Phases of Store Closing Sales Expected in the Coming Weeks

Reduced Store Footprint Will Drive Sustainable, Profitable Growth

PLANO, Texas – J. C. Penney Company, Inc. (OTCMKTS: JCPNQ) today announced that it has taken the first step in implementing its store optimization strategy. Following a comprehensive evaluation of its retail footprint and a careful analysis of store performance and future strategic fit for the Company, JCPenney identified the first phase of 154 store closures. Following entry of an order at the June 11, 2020, hearing with the U.S. Bankruptcy Court for the Southern District of Texas, in Corpus Christi, Texas, store closing sales will begin at 154 locations.

The Company expects additional phases of store closing sales will begin in the coming weeks. As the Company remains focused on its Plan for Renewal and driving sustainable, profitable growth, it intends to reduce its store footprint and focus resources on its strongest stores and powerful eCommerce flagship store, jcp.com. Store closing sales for the first round of store closures are expected to take 10-16 weeks to complete.

“While closing stores is always an extremely difficult decision, our store optimization strategy is vital to ensuring we emerge from both Chapter 11 and the COVID-19 pandemic as a stronger retailer with greater financial flexibility to allow us to continue serving our loyal customers for decades to come,” said Jill Soltau, chief executive officer of JCPenney. “I am incredibly grateful to our talented associates for their ongoing dedication and their passion for meeting and exceeding our customers’ expectations during this difficult and uncertain time. All impacted associates will be treated with the utmost consideration and respect.”

Ms. Soltau continued, “We will remain one of the nation’s largest apparel and home retailers as we continue to operate a majority of our stores and our flagship store, jcp.com, to ensure our valued customers continue to have access to the products and brands they need and want. As of June 4, 2020, we have reopened nearly 500 stores since government officials have eased COVID-19 restrictions and we look forward to opening more. We are excited to welcome back our customers and associates at these locations, and we will continue to take actions to be best positioned to build on our over 100-year history.”

The list of 154 stores that will begin closing sales can be found on the JCPenney Blog. JCPenney continues to monitor CDC guidelines, as well as state and local mandates, to inform its practices, taking extra precautions and going above and beyond those recommendations to ensure the safety of its associates and customers.

As previously announced on May 15, 2020, JCPenney entered into a restructuring support agreement with lenders holding approximately 70 percent of JCPenney’s first lien debt to reduce the Company’s outstanding indebtedness and strengthen its financial position. To implement the financial restructuring plan, the Company filed voluntary petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code.

Additional Information
Additional information regarding JCPenney’s financial restructuring is available at www.jcprestructuring.com. Court filings and information about the claims process are available at http://cases.primeclerk.com/JCPenney, by calling the Company’s claims agent, Prime Clerk, toll-free at 877-720-6576 or sending an email to JCPenneyinfo@primeclerk.com.