J.C. Penney Bankruptcy Could Affect 22 Virginia Stores: Report

VIRGINIA — The iconic but struggling retailer J.C. Penney Co. is preparing to file for bankruptcy, perhaps as soon as next week, as the new coronavirus continues to take a toll on bricks-and-mortar retailers, Reuters reported. The report said the department store chain will close permanently about 200 of its 850 stores, but it’s unclear if any of Virginia's 22 stores will be included.

J.C. Penney has Virginia locations in:

• CHARLOTTESVILLE(1)
• CHESAPEAKE(2)
• COLONIAL HEIGHTS(1)
• DANVILLE(1)
• FAIRFAX(1)
• FREDERICKSBURG(1)
• GLEN ALLEN(1)
• HAMPTON(1)
• HARRISONBURG(1)
• LYNCHBURG(1)
• NEWPORT NEWS(1)
• RICHMOND(3)
• ROANOKE(1)
• SPRINGFIELD(1)
• STAUNTON(1)
• STERLING(1)
• VIRGINIA BEACH(1)
• WINCHESTER(1)
• WOODBRIDGE(1)

The 118-year-old chain based in Plano, Texas, was struggling before the business shutdowns associated with the pandemic. The company has about $4 billion in debt and has been edged out of the marketplace by e-commerce companies and discount bricks-and-mortar stores, Reuters said.

As J.C. Penney navigates bankruptcy proceedings, the company is working with creditors for a “debtor-in-possession loan,” the Reuters report said.

J.C. Penney would be the third major retailer to seek bankruptcy protection since the pandemic began. The J.Crew Group filed for bankruptcy earlier this month, and Neiman Marcus said last week it was turning its business over to creditors who provided the company with $675 million in financing to continue operations.

» Read the full J.C. Penney report on Reuters.

Other chains that are closing some of their Virginia stores include the Gap, Pier 1 Imports, Bed Bath & Beyond, Sears, Kmart, Motherhood Maternity, Dressbarn and more.

Two Gap clothing stores in Virginia closed in January 2020. The store closure was part of a plan announced in February 2019 to close 230 stores across the country. The two stores that closed were located at 1534 Rio Road E. in Charlottesville and 21100 Dulles Town Circle in Dulles, the company said.

Gap joins other chains that are closing some of their Virginia stores.

Papyrus, a stationery retailer, is closing all of its stores across the country, according to Fortune. The chain operates three Washington, D.C., stores and six Virginia stores, including shops in McLean, Arlington, Alexandria and Fairfax.

In January, Pier 1 said it would likely close half of its stores to "better align its business with the current operating environment."

A dozen Virginia stores, including one each in Manassas, Falls Church, Arlington and Alexandria, were removed from the chain's website. The company confirmed on social media the stores removed from the website were slated for closure. Patch has posted the full list of the 12 Pier 1 stores expected to close.

Lord & Taylor said in November it is closing two stores in Northern Virginia, its Tysons Corner Center store and its Dulles Town Center store in Sterling, the Washington Business Journal reported. The Lord & Taylor store at Tysons laid off 117 employees, effective Jan. 31. The store at Dulles Town Center laid off 79 employees when it closed Christmas Eve, according to the report.

The women's clothing store Avenue is closing more than 200 locations across the country, including three stores in Virginia. Read more.

In November, craft supply store A.C. Moore announced it was closing all of its stores. The arts and crafts supplier operates at least 15 stores in Virginia. Under the transition, as many as 40 A.C. Moore stores will become Michaels. The locations to become Michaels have not yet been named. Read more.

Related:

• J.Crew, Which Has 10 Stores In VA And DC, Files For Bankruptcy
• NoVA, DC Store Closings By Chain Retailers In 2019