The department store chain JCPenney has announced it will be closing several of its locations over the next few months, amid a crisis that has impacted several retailers across the country, forcing them to slow down or reduce their operations.
Which JCPenney stores will close in 2025?
According to the company, the closures this year are scheduled for locations in eight states across the country. Here is the full list of stores that will close in 2025:
California
- Tanforan store, 1122 El Camino Real, San Bruno
Colorado
- Northfield store, 8568 E 49th Avenue, Denver
Idaho
- Pine Ridge Mall store, 4201 Yellowstone Avenue, Pocatello
Kansas
- West Ridge Mall store, 1821 SW Wanamaker Road, Topeka
Maryland
- Annapolis Mall store, 1695 Annapolis Mall Road, Annapolis
North Carolina
- Asheville Mall store, 3 S Tunnel Road, Asheville
New Hampshire
- Fox Run Mall store, 50 Fox Run Road, Newington
West Virginia
- Charleston Town Center store, 401 Lee Street E, Charleston
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Why is JCPenney closing its stores?
According to the latest reports from the company, this closure comes during a time of transformation and challenges for the retail industry, which continues to face the impacts of the pandemic, the rise of e-commerce, and changes in consumer habits.
Management is trying to move the business forward, although progress has been limited. Since JCPenney filed for Chapter 11 bankruptcy protection in May 2020, the number of its stores has decreased from around 850 to approximately 650. The company has confirmed that these closures are not related to the recent merger of JCPenney with Sparc, a retail store operator.
How many stores does JCPenney have in the United States?
Currently, the department store chain has more than 650 locations across the country.
Store closures in the United States
Since last year, many traditional businesses with physical locations in the United States have closed after failing to adapt to the changing market dynamics following the COVID-19 pandemic.
According to Coresight Research, it is estimated that around 15,000 stores will close in 2025, compared to 7,325 closures last year. Meanwhile, the number of new store openings is expected to decrease from 5,970 to 5,800.
Well-known retailers have announced store consolidations, closures, and even bankruptcies due to the sector’s declining outlook, including:
- Kohl’s
- Bargain Hunt
- Big Lots
- Walgreens
- Macy’s
- Starbucks
What is Chapter 11 of the U.S. Bankruptcy Code?
Chapter 11 of the U.S. Bankruptcy Code is one of the most common processes used by companies or individuals who are unable to meet their financial obligations but wish to reorganize and continue operating.
This process allows companies to continue their operations while temporarily suspending debt payments, with the goal of restructuring. Once the restructuring is completed, creditors are paid according to the terms established during the process.
Who can file for protection under Chapter 11?
This protection is available to businesses of all sizes, from large to small, as well as to sole proprietors and partnerships. Under U.S. law, any company or individual that has a domicile, place of business, or assets in the country can request court supervision to restructure their finances and operations under Chapter 11 provisions.
It does not matter the value of assets that a foreign company may have in the United States, as there is no minimum or maximum threshold to be eligible for Chapter 11 bankruptcy protection.
What benefits does Chapter 11 offer?
Chapter 11 does not lead to the immediate dissolution of the company or individuals who use it, resulting in liquidation and the implementation of cuts. During this period, the law allows the individual to continue operations and reorganize without the pressure of creditors. Additionally, it provides the opportunity to negotiate and present a plan for the payment of financial obligations.
