JC Penney Files For Chapter 11 Bankruptcy Protection

[buckguy]

Retailers hang on forever through multiple bankruptcies, because they have cash flow. If they can discharge their weakest leases and liquidate stock, while social distancing restrictions are eased they may stick around longer.

Grocers seems to last forever after bankruptcy---Winn Dixie staggers on and A&P's final demise was almost a surprise. Grocers have the benefit of more rapid turnover of goods than department stores but that doesn't mean that cash flow can work in their favor. WT Grant, the largest retail bankruptcy that had ever occurred up to the 70s, happened because of uncollectable debt and ineffective inventory and financial management systems on top of a recession and, yet, the chain didn't close all at once..

[reymann]

fashion fair in fresno could be in big trouble with jcpenney and forever 21 in danger of liquidating and macy's potentially consolidating into one space.

[arizonaguy]

I am not sorry to see Kmart go. I have mixed feelings about Sears. They should be buried along with Lampert.

I am sorry to see JCP go. My Mom was a buyer back in their better days but there were signs even back then that perhaps was a warning. Their executives started to behave in arrogant ways that filtered down into the entire company. Corporate hubris ALWAYS has consequences.

Seems that we will be left with the Marshalls, Ross, TJ Max, H&M (substandard quality), Dollar Generals of the world to shop at or forced to buy online (can't stand that).

I'm just not good at hunting and bargain shopping and sifting through chaotic messes like Ross, et al. (with zero to little customer service). I admire people that can. I know this does not serve me well because it is what it is and it seems that it is the way it will continue to develop.

Guess I'm gonna have to learn or find some friends to help me out...........LOL

I'm not confident that all we are going to be left with is off price, discounter (Target/Walmart), or online.

I believe there is a need for a mid range brick and mortar clothing store and one will eventually come about (I also feel the same way about toy retailer). Brick and mortar retail is currently undergoing a contraction due to massive expansion from the 1980s - late 2000s. The other issue though is that the shrinking size of the middle class is even pricing people out of anything above a discount level. This is a societal issue that we're going to have to grapple with over the next decade or so.

[marshd1000]

I am not sorry to see Kmart go. I have mixed feelings about Sears. They should be buried along with Lampert.

I am sorry to see JCP go. My Mom was a buyer back in their better days but there were signs even back then that perhaps was a warning. Their executives started to behave in arrogant ways that filtered down into the entire company. Corporate hubris ALWAYS has consequences.

Seems that we will be left with the Marshalls, Ross, TJ Max, H&M (substandard quality), Dollar Generals of the world to shop at or forced to buy online (can't stand that).

I'm just not good at hunting and bargain shopping and sifting through chaotic messes like Ross, et al. (with zero to little customer service). I admire people that can. I know this does not serve me well because it is what it is and it seems that it is the way it will continue to develop.

Guess I'm gonna have to learn or find some friends to help me out...........LOL

I'm not confident that all we are going to be left with is off price, discounter (Target/Walmart), or online.

I believe there is a need for a mid range brick and mortar clothing store and one will eventually come about (I also feel the same way about toy retailer). Brick and mortar retail is currently undergoing a contraction due to massive expansion from the 1980s - late 2000s. The other issue though is that the shrinking size of the middle class is even pricing people out of anything above a discount level. This is a societal issue that we're going to have to grapple with over the next decade or so.

I know that Kohl’s is mostly a non mall retailer, yet I know that they do have some mall locations here in Washington State like Bellis Fair and The Commons at Federal Way. So I am wondering if some Penney’s locations could be acquired by Kohl’s?

I know this may not be likely, but could some company like Kroger acquire some Penney’s locations and/or intellectual property and integrate them as part of their Marketplace concepts? While JC Penney is in trouble, it doesn’t seem to me that their reputation is nearly as trashed as Sears/Kmart. So I am wondering if there would be any value to Kroger buying them or Albertsons? It seems to me that Walmart and Target could use some competition! It also seems to me that there will always be a place for brick and mortar apparel. It is nice to be able try on clothes before buying them! But mid market apparel seems to have more of a future in big box and hyper market than in traditional department stores. Some Penney locations I think could be turned into a Fred Meyer type set up!

[Super S]

I know this may not be likely, but could some company like Kroger acquire some Penney’s locations and/or intellectual property and integrate them as part of their Marketplace concepts? While JC Penney is in trouble, it doesn’t seem to me that their reputation is nearly as trashed as Sears/Kmart. So I am wondering if there would be any value to Kroger buying them or Albertsons? It seems to me that Walmart and Target could use some competition! It also seems to me that there will always be a place for brick and mortar apparel. It is nice to be able try on clothes before buying them! But mid market apparel seems to have more of a future in big box and hyper market than in traditional department stores. Some Penney locations I think could be turned into a Fred Meyer type set up!

Fred Meyer seems to be reducing apparel offerings, including eliminating big & tall sizes as well as some brands. JCPenney has some brands that overlap, but it's hard to tell which way Fred Meyer wants to go here. Fred Meyer seems to be struggling in this area.

[storewanderer]

I am not sorry to see Kmart go. I have mixed feelings about Sears. They should be buried along with Lampert.

I am sorry to see JCP go. My Mom was a buyer back in their better days but there were signs even back then that perhaps was a warning. Their executives started to behave in arrogant ways that filtered down into the entire company. Corporate hubris ALWAYS has consequences.

Seems that we will be left with the Marshalls, Ross, TJ Max, H&M (substandard quality), Dollar Generals of the world to shop at or forced to buy online (can't stand that).

I'm just not good at hunting and bargain shopping and sifting through chaotic messes like Ross, et al. (with zero to little customer service). I admire people that can. I know this does not serve me well because it is what it is and it seems that it is the way it will continue to develop.

Guess I'm gonna have to learn or find some friends to help me out...........LOL

I think Macy's will still be an option for now anyway. Hopefully they can get their act together and stay in business, and quit restructuring every year. So will Dillards and Nordstrom, probably quite a while longer as they seem to be more stable operators who don't restructure every year.

One time in high school I went into Ross looking for jeans and found a pile of stuff and took them into the fitting room. Some of the jeans were clearly soiled, absolutely disgusting. I went out and went over to the restroom to wash my hands. You had to be "buzzed in" to the restroom. This was not in what I thought was a bad neighborhood (Safeway next door) and I was frequently in this shopping center late at night, etc. without incident. That was the last time I shopped Ross. And really, I have a negative impression of the entire off price format based on that one experience with one of the chains. These off price concepts like Ross, TJ Maxx, Marshalls, etc. may be on a hot ride right now but I really question it long term. Is this really the direction we want to go, where the only place to shop is those places or online?

[veteran+]

I am not sorry to see Kmart go. I have mixed feelings about Sears. They should be buried along with Lampert.

I am sorry to see JCP go. My Mom was a buyer back in their better days but there were signs even back then that perhaps was a warning. Their executives started to behave in arrogant ways that filtered down into the entire company. Corporate hubris ALWAYS has consequences.

Seems that we will be left with the Marshalls, Ross, TJ Max, H&M (substandard quality), Dollar Generals of the world to shop at or forced to buy online (can't stand that).

I'm just not good at hunting and bargain shopping and sifting through chaotic messes like Ross, et al. (with zero to little customer service). I admire people that can. I know this does not serve me well because it is what it is and it seems that it is the way it will continue to develop.

Guess I'm gonna have to learn or find some friends to help me out...........LOL

I'm not confident that all we are going to be left with is off price, discounter (Target/Walmart), or online.

I believe there is a need for a mid range brick and mortar clothing store and one will eventually come about (I also feel the same way about toy retailer). Brick and mortar retail is currently undergoing a contraction due to massive expansion from the 1980s - late 2000s. The other issue though is that the shrinking size of the middle class is even pricing people out of anything above a discount level. This is a societal issue that we're going to have to grapple with over the next decade or so.

I know that Kohl’s is mostly a non mall retailer, yet I know that they do have some mall locations here in Washington State like Bellis Fair and The Commons at Federal Way. So I am wondering if some Penney’s locations could be acquired by Kohl’s?

I know this may not be likely, but could some company like Kroger acquire some Penney’s locations and/or intellectual property and integrate them as part of their Marketplace concepts? While JC Penney is in trouble, it doesn’t seem to me that their reputation is nearly as trashed as Sears/Kmart. So I am wondering if there would be any value to Kroger buying them or Albertsons? It seems to me that Walmart and Target could use some competition! It also seems to me that there will always be a place for brick and mortar apparel. It is nice to be able try on clothes before buying them! But mid market apparel seems to have more of a future in big box and hyper market than in traditional department stores. Some Penney locations I think could be turned into a Fred Meyer type set up!

So true about that middle class problem!!!!

I don't mind Target (it still works for me when I need that). Walmart? Never ever!

I'm one of those guys that can't stand shopping (perhaps because I was in retail for too many years). The Ross type of experience, on ALL levels, confirms every reason why I don't like shopping.

I know I lose out on some really good deals but the work to find them is just not worth to me (my bad....). Don't care much for outlet stores as well.

[cjd]

Honestly the mid-range department stores just don't work with my mindset. I won't pay full price or anywhere near MSRP for anything. I either wait for it to go on sale, clearance or get it at Ross or Marshalls (and even then sometimes only on clearance!) If I find a brand that I know fits me well and I like, then I'll even look for it on eBay if I know the sizing is correct. Or even just go to Goodwill, and find someone donated their whole wardrobe of a certain brand and barely wore any of it.

Lately JCPenney just did not have anything that worked for me. Young men's was extremely cheap quality and hardly anything was moving. Constantly, I 'd go months later and the same clothes in the same spots, even on sale nothing was moving.

The perpetual clearance department was mostly just ugly clothes that had ugly colors or looked like it was years old. I used to love their Stafford dress shirts, but the last ones I bought felt suffocating, the material didn't breathe at all.

I'd like to see JCPenney make a comeback but they'd have to at least get back to their early 2000s or 1990s range of quality and selection, or at least take their brand scheme of the early 2010s and improve on it. Barely anything in their stores now would interest me and it's only gotten worse in the last few years.

Belk and Bealls are at least decent for me if I catch a sale, and way better quality.

Sears and Kmart, aside from the workers, otherwise need to just go away. Eddie's gotten enough money, it's time to cut him off ages ago. I don't miss Kmart aside from my 90s memories of it, Sears I wish was still here but at least back to how they were in the early 2000s or preferably pre Lampert era!

Sadly if Penneys goes, that leaves the mall here with 3 vacancies (JCP, Sears and Kmart) and only 2 anchors left.

[veteran+]

Yep....so many of my friends do the same thing and legitimately boast about the deals they find.

For me....I just don't like the time I would have to spend. I have gone on shopping trips with them and the hunting and pecking and the disheveled conditions (almost all locations) drove me crazy. Even Steinmart is annoying but neater.

The online experience for me has not been good for a plethora of reasons. But more and more I feel pressured to conform to this way. Variety at store level seems to be diminishing more and more.

I know I'm in the minority..............maybe I need a brainwash.....lol.

[storewanderer]

The reality is you could find even better deals in a better atmosphere than these off price stores by digging through a much smaller number of clearance racks at Macys or Dillards (especially when Dillards has extra % off). Macys hasn't been as good in recent years but Dillards is still really really good.

I don't really consider Stein Mart to be in the same class as Ross and TJ Maxx. I know it is the same format, but it seems to offer higher cost product. The racks are organized and not overflowing with items. They hardly have any men's clothing anymore, though. At least in Reno, the Stein Mart store is clean as can be, neat, and a generally dead shopping experience as the store rarely has more than a few customers inside. They also recently did some light renovation to the store (new carpet, remodeled restrooms, etc.) which helped as it was pretty much original to 1997 before in there (maintained, but very dated). Based on finances, I'm not sure what the future holds for Stein Mart. But they've been on the ropes many times before and always seem to make it.