PLANO, TX – J. C. Penney Company, Inc. today announced that as part of its turnaround efforts, the company will be closing 33 underperforming stores across the country in order to focus its resources on the Company’s highest potential growth opportunities.
In Iowa, a store in Muscatine will be closed. According to a list of the stores that are to be closed, nearly every one is i a mall or shopping center.
These actions are expected to result in an annual cost savings of approximately $65 million, beginning in 2014. In connection with this initiative, the Company expects to incur estimated pre-tax charges of approximately $26 million in the fourth quarter of fiscal 2013 and approximately $17 million in future periods.
Last week, JCPenney reported that the Company is pleased with its performance for the holiday period, showing continued progress in its turnaround efforts. According to a press release, customers responded well to the company’s offerings this holiday shopping season, both in store and online.
