JC Penney Files For Chapter 11 Bankruptcy Protection

Predicting the demise of Sears & Kmart since 2017!
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Re: JC Penney Files For Chapter 11 Bankruptcy Protection

Post by veteran+ »

For the most part, I think there is a void in American retail that COVID has brutally exposed.

The sparsity of real talent in top management with their consistently poor decisions. Consolidation has only worsened the situation along with a whole bunch of systemic issues that have a long history of not working.

Everything from Executive compensation to shareholder profit to incompetent R&D to poor retention and training of employees to NOT really listening to their customers, etc etc etc.

This bandaid on a festering wound will not work. Can't help but feel bad for JCP...............but this is their own doing and it started quite a while ago.
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Re: JC Penney Files For Chapter 11 Bankruptcy Protection

Post by BillyGr »

SamSpade wrote: July 28th, 2020, 11:37 am So, it didn't seem like this worked for Stage by rebranding and retooling Stage's many stores with grand reopenings as Gordman's.
That seemed to work OK, they just didn't have enough time to get established in most of these stores before they were closed down (with the virus restrictions), and apparently their funding sources were not willing to give them some time now that they could reopen to do so and see how it would work out.
storewanderer wrote: July 28th, 2020, 12:24 pm I don't see this working out at all. Why would they rebrand to Belk in the Western and Mountain States (and the East Coast?). Belk is a Southern brand. These are different markets. Very different markets. I also think JCP has a very different customer. I could see maybe eliminating JCP where there is overlap.
Perhaps it's one of those things, where some people won't go back to JC Penney due to past experiences, but if they see a new name in town it will at least get them to go in and check it out. New brands always seem to draw interest, at least for a time just to see what they are - no guarantee it will work long term, but if they offer something that people like it just might.
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Re: JC Penney Files For Chapter 11 Bankruptcy Protection

Post by pseudo3d »

BillyGr wrote: July 29th, 2020, 1:19 pm
SamSpade wrote: July 28th, 2020, 11:37 am So, it didn't seem like this worked for Stage by rebranding and retooling Stage's many stores with grand reopenings as Gordman's.
That seemed to work OK, they just didn't have enough time to get established in most of these stores before they were closed down (with the virus restrictions), and apparently their funding sources were not willing to give them some time now that they could reopen to do so and see how it would work out.
The thing with Stage Stores is prior COVID-19 kicked off in earnest (forced closures, etc.) they switched gears and instead of converting a handful of Bealls, etc. to Gordmans (especially in the more "urban" markets), they closed or converted ALL of them. The original plan was to keep some Bealls in the small markets as-is (and presumably other brands, like Stage or Palais Royal). The closures and the uncertainty of Gordmans' success would've been a hard sell, to say the least.
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Re: JC Penney Files For Chapter 11 Bankruptcy Protection

Post by Alpha8472 »

I stopped by JCPenney at Sunvalley Mall today and I have even less confidence in how this company can possibly stay in business. The surface parking lot has been blocked off by traffic barriers. It looks like the store is closed down. However, if you travel around the building and go deep inside the dark underground parking garage you will find a single open entrance. There are tiny little signs that say "JCP Is Open." They are making it scary for even the loyal JCPenney customers to shop there. The parking garage was poorly lit and half of the lights in the parking garage were turned off. Or maybe JCPenney did that on purpose to save electricity? Perhaps they are afraid that shoplifters will ram the front door with cars on the surface level and loot the store? I certainly would not feel safe having to park in this dark garage just to shop at the store.

The Sears at Sunvalley Mall is open and they do not have traffic barriers blocking the main parking lot. At least, Sears is trying to make it look like they are open. I saw one plastic tarp on a bush by the road saying "Sear is Open."
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Re: JC Penney Files For Chapter 11 Bankruptcy Protection

Post by storewanderer »

The Reno JCP only has one entrance open as well but it is one of the front entrances.

The Elko JCP had both entrances open (it has a front door and a back door).

Many stores are on a single point of entry to enforce mask rules.
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Re: JC Penney Files For Chapter 11 Bankruptcy Protection

Post by babs »

veteran+ wrote: July 29th, 2020, 6:44 am For the most part, I think there is a void in American retail that COVID has brutally exposed.

The sparsity of real talent in top management with their consistently poor decisions. Consolidation has only worsened the situation along with a whole bunch of systemic issues that have a long history of not working.

Everything from Executive compensation to shareholder profit to incompetent R&D to poor retention and training of employees to NOT really listening to their customers, etc etc etc.

This bandaid on a festering wound will not work. Can't help but feel bad for JCP...............but this is their own doing and it started quite a while ago.
I don't agree with you on this. Just look to places like Target, Costco, Walmart, these companies all have great talent throughout their organizations. As for other retailers, the issues go much deeper. One of two things is going on. One, these old line retailers often have a culture that discourages out of the box thinking. They have talent but being safe gets you promoted. Second, when retailers run into trouble, they often don't have the money to fix things. JCPenney's prototype store in Texas looks great. But they don't have the money to roll it out. Not sure if it would be able to save them but these guys don't have the billions to overhaul all their stores so while they have one revolutionary store, the rest are dull, rundown and flat out depressing.
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Re: JC Penney Files For Chapter 11 Bankruptcy Protection

Post by veteran+ »

babs wrote: July 29th, 2020, 10:54 pm
veteran+ wrote: July 29th, 2020, 6:44 am For the most part, I think there is a void in American retail that COVID has brutally exposed.

The sparsity of real talent in top management with their consistently poor decisions. Consolidation has only worsened the situation along with a whole bunch of systemic issues that have a long history of not working.

Everything from Executive compensation to shareholder profit to incompetent R&D to poor retention and training of employees to NOT really listening to their customers, etc etc etc.

This bandaid on a festering wound will not work. Can't help but feel bad for JCP...............but this is their own doing and it started quite a while ago.
I don't agree with you on this. Just look to places like Target, Costco, Walmart, these companies all have great talent throughout their organizations. As for other retailers, the issues go much deeper. One of two things is going on. One, these old line retailers often have a culture that discourages out of the box thinking. They have talent but being safe gets you promoted. Second, when retailers run into trouble, they often don't have the money to fix things. JCPenney's prototype store in Texas looks great. But they don't have the money to roll it out. Not sure if it would be able to save them but these guys don't have the billions to overhaul all their stores so while they have one revolutionary store, the rest are dull, rundown and flat out depressing.
There are exceptions but they are few.

Costco would be one of them.

In comparison with similar formats, Target is not too bad depending on the store. I was not impressed with customer service in San Diego or Los Angeles..........at all. Also fewer and fewer employees.

Walmart? I categorically disagree!
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Re: JC Penney Files For Chapter 11 Bankruptcy Protection

Post by TW-Upstate NY »

Let's be honest here (and this has been noted in various thoughts here over the years)-the entire concept of the "old-line" conventional department store has devolved into one thing-these places have turned into nothing but over-priced (and over-sized in terms of square footage) clothing stores. That's it-that's all they have to offer. I need a new shirt well I can go to Target (or Wal-Mart even) for that AND pick up household items and some hard lines at the same time. Can't do that at Penney's or Macy's or (insert name of old-line retailer here.) And oh yeah, the stuff is a LOT cheaper at Target too even when one of these other stores have a 50-75% clearance event which seems like every time you turn around they're doing something like that. And if I need something basic like underwear or socks, heck I can get those at Dollar General for crying out loud. These chains have NOTHING to at least get the consumer to set foot in their stores and NOTHING to sell the consumer once they're in the store and it looks like it's the end of the line for more than a few of them. It's unfortunate but it's reality and the current health/economic circumstances we find ourselves in is only going to accelerate the decline.
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Re: JC Penney Files For Chapter 11 Bankruptcy Protection

Post by Super S »

TW-Upstate NY wrote: July 30th, 2020, 10:19 am Let's be honest here (and this has been noted in various thoughts here over the years)-the entire concept of the "old-line" conventional department store has devolved into one thing-these places have turned into nothing but over-priced (and over-sized in terms of square footage) clothing stores. That's it-that's all they have to offer. I need a new shirt well I can go to Target (or Wal-Mart even) for that AND pick up household items and some hard lines at the same time. Can't do that at Penney's or Macy's or (insert name of old-line retailer here.) And oh yeah, the stuff is a LOT cheaper at Target too even when one of these other stores have a 50-75% clearance event which seems like every time you turn around they're doing something like that. And if I need something basic like underwear or socks, heck I can get those at Dollar General for crying out loud. These chains have NOTHING to at least get the consumer to set foot in their stores and NOTHING to sell the consumer once they're in the store and it looks like it's the end of the line for more than a few of them. It's unfortunate but it's reality and the current health/economic circumstances we find ourselves in is only going to accelerate the decline.
Very well said. JCPenney and Macy's have some stores that are simply too large to be devoted to mostly clothing.
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Re: JC Penney Files For Chapter 11 Bankruptcy Protection

Post by pseudo3d »

Super S wrote: July 30th, 2020, 2:24 pm Very well said. JCPenney and Macy's have some stores that are simply too large to be devoted to mostly clothing.
...and yet I still can't find anything that I like AND in my size, even in 70k-100k square foot stores.

So apparently JCPenney denies the Sycamore rumor, but the bidders are still secret. Bet they're all private equity firms who will just delay the inevitable (at best, worse case is just stripping it apart for assets...I can almost imagine Lampert buying it and converting the remaining Sears stores into JCPenney)...but I'm also wondering if it's a left-field choice (like Kroger or Walmart) to buy the stores.
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