JC Penney Files For Chapter 11 Bankruptcy Protection

[storewanderer]

The list of 242 store closures will supposedly be released on June 4.

Liquidation sales will then start soon after. This makes sense.

I wonder why previously they laid out a much longer timespan for the liquidation sales? I am guessing the completely in denial management has lost some control over how the company does things to the bankruptcy trustees and the bankruptcy trustees are making better decisions on how to do things.

[BillyGr]

The list of 242 store closures will supposedly be released on June 4.

Liquidation sales will then start soon after. This makes sense.

I wonder why previously they laid out a much longer timespan for the liquidation sales? I am guessing the completely in denial management has lost some control over how the company does things to the bankruptcy trustees and the bankruptcy trustees are making better decisions on how to do things.

Maybe also that when they first were planning, they had little idea when they would be able to do any kind of store sales in many places, so it wouldn't make sense to announce a store closing only to find out they couldn't open it to liquidate?

Now it seems most areas are at least giving out ideas on when stores can re-open (if they aren't already), so it would now be easier to set things up with a more specific current date.

[storewanderer]

The list of 242 store closures will supposedly be released on June 4.

Liquidation sales will then start soon after. This makes sense.

I wonder why previously they laid out a much longer timespan for the liquidation sales? I am guessing the completely in denial management has lost some control over how the company does things to the bankruptcy trustees and the bankruptcy trustees are making better decisions on how to do things.

Maybe also that when they first were planning, they had little idea when they would be able to do any kind of store sales in many places, so it wouldn't make sense to announce a store closing only to find out they couldn't open it to liquidate?

Now it seems most areas are at least giving out ideas on when stores can re-open (if they aren't already), so it would now be easier to set things up with a more specific current date.

I think if a store was slated for closing, it may not make much sense to reopen it as "normal" at all. It seems like it would be easier to just reopen it under liquidation and be done with it.

And maybe that is what they are doing.

They finally reopened here in Reno and also in some rural NorCal towns (Grass Valley, Yuba City) as well as Roseville. Still closed tight around Sacramento other than Roseville.

[BillyGr]

The list of 242 store closures will supposedly be released on June 4.

Liquidation sales will then start soon after. This makes sense.

I wonder why previously they laid out a much longer timespan for the liquidation sales? I am guessing the completely in denial management has lost some control over how the company does things to the bankruptcy trustees and the bankruptcy trustees are making better decisions on how to do things.

Maybe also that when they first were planning, they had little idea when they would be able to do any kind of store sales in many places, so it wouldn't make sense to announce a store closing only to find out they couldn't open it to liquidate?

Now it seems most areas are at least giving out ideas on when stores can re-open (if they aren't already), so it would now be easier to set things up with a more specific current date.

I think if a store was slated for closing, it may not make much sense to reopen it as "normal" at all. It seems like it would be easier to just reopen it under liquidation and be done with it.

And maybe that is what they are doing.

They finally reopened here in Reno and also in some rural NorCal towns (Grass Valley, Yuba City) as well as Roseville. Still closed tight around Sacramento other than Roseville.

That would make sense as well (and one might think those stores doing liquidations might just inherit items from nearby stores, like now out of season clothing or already on clearance items, just to get rid of them).

I was thinking more that they left the liquidations with a long timeframe originally since they weren't sure if they would be allowed to start sales in June, July or even later when first planning. So, they didn't want to say all liquidations would be complete by the end of September (for instance), only to find out that some area wouldn't allow them to start their sale until September 15th (making it difficult to do such a sale in 2 weeks timeframe).

[arizonaguy]

Looking at the list for Arizona they are closing a small town location in Cottonwood and 2 "inner ring" locations in Phoenix and Tucson.

The Phoenix store's demise is probably tied to the demise of the Costco in the same shopping center (one of the few Costcos to close without a new location nearby).

The Tucson store is a bit more perplexing as it's the nearest location to the East side of town but I guess JCPenney doens't like sharing a shopping center with Target and Walmart (both the Tucson and Phoenix locations are in centers anchored by Target AND Walmart).

[cjd]

Just found out the one here is closing. Not surprised since it hadn't reopened. That leaves only Bealls and Belk as the anchors at the mall, and 3 large vacancies. Don't see it improving, they will never fill that many large spaces, even with non-retail tenants.

[SamSpade]

Looking at the list for Arizona they are closing a small town location in Cottonwood and 2 "inner ring" locations in Phoenix and Tucson.

The Phoenix store's demise is probably tied to the demise of the Costco in the same shopping center (one of the few Costcos to close without a new location nearby).

The Tucson store is a bit more perplexing as it's the nearest location to the East side of town but I guess JCPenney doens't like sharing a shopping center with Target and Walmart (both the Tucson and Phoenix locations are in centers anchored by Target AND Walmart).

Or it speaks to the changing nature of retail and the problem for JCPenney. It's a traditional "fashionable" apparel retailer for the lower to middle class to find pieces for workwear and shoes for men and women in a variety of categories alongside children's clothing and shoes. You might also occasionally pick up a sheet set, pillows, towels, or some other dependable home basics while you're at it.

But there have been many shifts in what is considered 'business' apparel and their quality seems too low to capture a higher middle class to lower upper class shopper. Target wins in the low end fast fashion and younger shopper. Walmart wins in the basics category. Catalog/online/select retail retailers like Duluth make gains in heavier work wear and casual wear for more "relaxed" men and women.

While they carried more name brand clothing(Walmart and Target still only have "by (insert major brand name here)" labeled products, but TJMaxx, Marshalls, Ross, Burlington and the like sell items with the name printed on them (and outlet stores and on and on and and on...).

[SamSpade]

► Show Spoiler

Idaho
Interesting - Lewiston.
The Lewiston Center Mall kind of rebounded from earlier losses of regional stores like Emporium and Tidyman's, but with Macy's closing this January and now JCPenney leaving...
The mall will have to find a unique way to access public restrooms. According to the mall map, the only restrooms are located in the Macy's or the JCPenney space. This is a relatively short drive to Moscow, Idaho, which has a mall with both a Macy's and JCPenney.

"Ponderay" which is immediately adjacent to Sandpoint - this is a very small mall in a community that is relatively close to Coeur d'Alene (and Spokane) where most retail dollars are likely spent beyond Walmart. Small store.

Montana
With Bozeman closing, they are leaving quite a gap in coverage here but Montana is a rural and expensive to operate state. Macy's remains in the Gallatin Valley Mall but no other large department stores. This takes them down to 2 left in Montana - Great Falls (outlier)
Billings (largest city in the state)

Oregon
Salem - long time downtown Salem anchor. Adjacent to Salem Center Mall as an anchor. Leaves behind Kohl's, Macy's, Ross. BIg store that always seemed to be run well and busy.

Bend - Small store, hooked up to a "box mall" strip center but not like the newer JCPenney stores that were built with this in mind. (I'm not sure if this was originally an enclosed mall? It's a really strange shopping center) Sad to see a store close in a growing metropolitan area. Last JCP in eastern Oregon

McMinnville - Small 1980s(?) store, attached to a shopping plaza and probably wasn't doing much business. McMinnville is well served with Kohl's, Fred Meyer, Walmart. On the way in to Portland, shoppers can hit Target in Sherwood. Of course the major mall in the area (Washington Square) has one of the largest JCPenney stores in the region.

Roseburg - Anchors a basic box shopping center that also has a Pier 1 Imports (ouch), Ross, Dollar Tree. Near a failed mall where Sportsman's Warehouse replaced a closed Macy's. Apparently the only 'fashion' retailer left in Roseburg will be Fred Meyer (!) It's no secret that the Rogue Valley has been struggling for a number of years, unfortunately.

Utah
Logan - small struggling mall. Lost Dillard's (replacement for ZCMI), which became Herberger's (also liquidated, obviously). There is now a Cal Ranch in one of the former Dillard's spaces. Logan is too close to the Wasatch Front sometimes, they lost Fred Meyer in 2004 when the shift to Smith's Marketplace took place.

Layton - Well, Layton Hills Mall was a big deal in the old days. Doesn't seem to be so hot these days. Of course having a large military base nearby with a commissary seems to be a challenge to some communities. Added Dick's Sporting Goods when Mervyn's went bust. Lost Macy's. Still has Dillard's.

[pseudo3d]

Most of the JCPenney closings don't seem too surprising, a lot of them seem to be in small-town malls or other B-class centers. The closest one to me (or Houston, for that matter) is West Hills Mall in Huntsville. It already is losing Palais Royal (don't know if it was even marked for conversion) and a third of the mall has been offices for years. Even in 2002 I remember it being profoundly dead, with only Dollar Tree, a few of the most boring, basic chains (not even a Payless, which was located in a stand-alone store further down the main road), and some small local boutiques.

Vista Ridge Mall (now Music City Mall, I believe?) I've been to (2004) when it was moderately healthy but again, they've lost a lot of stores as demographics and tastes shift, and it's not too much of a surprise.

[Super S]

https://www.cnbc.com/2020/06/04/jc-penn ... -list.html

A few thoughts on closures at locations I am familiar with:

Salem Center: I am a little surprised by this one. This was originally a freestanding downtown location which pre-dated the mall, and has a somewhat hidden access point inside the mall, on an upper level, which is down a corridor. Store received a remodel in the mid-2000s which added a drop ceiling and new lights, and within the last year or two the escalator underwent a major repair (or replacement?) The store's age plus the vacant Nordstrom space could have been factors. But the store seemed to be somewhat busy whenever I was there. Next closest locations are in the Portland area.

McMinnville: This standalone location seemed out of place, and I am not sure if this replaced a downtown location or if this was built from scratch. This store bears some resemblance to the store at Kelso, Washington's Three Rivers Mall (which has not made the list) and I would guess is a 1980s build. This closure I have expected.

Bend: This store I believe was once part of an enclosed mall (which also had a Kmart) which was redeveloped. I have never been inside this one, but am a little surprised due to the fact that Bend is a growing area, as well as the fact so many small town locations in Oregon have already closed. This will leave JCPenney's presence in Oregon on the west side of the Cascades.

Bonner Mall, Ponderay, Idaho: This location replaced a downtown Sandpoint location in the 1980s. I do remember visiting this mall not long after it opened and the JCPenney was still under construction, this is a very small mall.

It looks like JCPenney is gradually making a retreat to larger metro areas.