JCPenney to close more stores as company goes through restructuring

JCPenney is set to close seven more stores across the United States on Sunday, May 25, continuing the retailer’s long and complex journey of restructuring after years of financial struggles.

These latest closures affect locations scattered across the country, including malls in San Bruno, California; Denver, Colorado; Pocatello, Idaho; Topeka, Kansas; Newington, New Hampshire; Asheville, North Carolina; and Charleston, West Virginia.

This round of closures is part of the aftermath of JCPenney’s Chapter 11 bankruptcy filing in May 2020, a critical moment that came after years of declining sales, changing consumer habits, and fierce competition from e-commerce giants and fast-fashion retailers.

In the wake of the bankruptcy, JCPenney shuttered more than 200 stores nationwide and underwent major ownership changes when Simon Property Group and Brookfield Asset Management acquired the chain later that year.

Since then, the company has been working to redefine its brand and business model.

Early this year, JCPenney merged with Forever 21 and several other well-known apparel brands including Brooks Brothers, Aeropostale, Lucky Brand, Nautica, and Eddie Bauer, forming a new parent company called Catalyst Brands.

This merger was designed to leverage synergies between these retailers, aiming to operate roughly 1,800 store locations and create tens of thousands of jobs.

Despite this ambitious partnership, JCPenney emphasizes that the newest store closures are unrelated to the Catalyst Brands merger.

Instead, the company attributes these decisions to typical factors like expiring lease agreements, evolving market conditions, and other operational considerations.

For instance, JCPenney had earlier planned to close its Westfield Annapolis Mall location in Maryland but recently extended the lease through August 31, signaling that some stores may remain open depending on business circumstances.

A spokesperson for Catalyst Brands also indicated that the company is optimizing its corporate structure, which has resulted in about a 9% reduction in corporate roles.

This reflects ongoing efforts to streamline operations and focus resources where they are most needed amid a rapidly changing retail landscape.

As JCPenney moves forward, these closures underscore the challenges traditional department stores face in adapting to new shopping behaviors and economic pressures.

For customers in affected cities, the May 25 shutdown will mark the end of an era, while the retailer continues its search for a sustainable path ahead.

The full list of stores closing on May 25 are:

• The Shops at Tanforan, San Bruno, California

• The Shops At Northfield, Denver, Colorado

• Pine Ridge Mall, Pocatello, Idaho

• West Ridge Mall, Topeka, Kansas

• Fox Run Mall, Newington, New Hampshire

• Asheville Mall, Asheville, North Carolina

• Charleston Town Center, Charleston, West Virginia