J.C. Penney to shutter two NYC locations as part of widespread closures
Jul 8, 2020
Plano, Texas-based department store retailer J.C. Penney has added two NYC locations to the list of stores that it is closing in the wake of its Chapter 11 bankruptcy filing in May.
As announced by the company in a bankruptcy filing on Tuesday, it is closing its Manhattan Mall location, as well as its store at Kings Plaza, Brooklyn.
The Manhattan Mall store has remained closed following the Covid-19 pandemic and will not reopen, while the Kings Plaza location, which has reopened, will be permanently shuttered on September 27, with a liquidation sale likely starting next week.
According to the retailer, the closures will leave 17 J.C. Penney stores in operation in the NYC area, as well as in nearby New Jersey.
The company followed up its filing for Chapter 11 bankruptcy on May 15 with an announcement that it expected to shutter around 30% of its store network, which included some 846 locations at the time.
Thus far, J.C. Penney has announced two rounds of permanent closures as part of this strategy, one on June 17 affecting at least 136 stores, and another on June 22, targeting a further 13 locations. Liquidation sales have already begun at most of these stores.
When the company filed for bankruptcy, it said that it was planning to transition to a “prop co/op co” structure, splitting its real estate and operating businesses into two separate companies. The retailer is also exploring the possibility of a sale of its entire business.
As part of its Chapter 11 proceedings, J.C. Penney has until July 8 to submit its business plan, which must be approved by lenders by July 15.
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