JC Penney will close 140 stores

JC Penney will close 140 stores

JC Penney will close 140 stores

JCPenney, with five stores in the Rio Grande Valley including one at Sunrise Mall and one at Valle Vista Mall, announced Friday it will close between 130 and 140 stores this year. A list of the planned store closures will be released mid-March, the Plano, Texas-based retailer said in a statement.

According to its website, J. C. Penney has 24 stores in Virginia.

In a statement, J. C. Penney chairman and CEO Marvin R. Ellison said that a year ago, the company achieved its target of $1 billion in earnings before interest, tax, depreciation, and amortization (EBITDA) target and recorded a net profit for the first time since 2010.

Sears Holdings, which includes the Sears and Kmart brands, announced plans to close 150 stores last month, and Macy's is closing 68 stores and cutting 10,000 jobs.

"Appliances sales both in store and online continue to drive significant comp growth and improve productivity in our home store", Ellison said. "We believe the relevance of our brick and mortar portfolio will be driven by the implementation of these initiatives consistently to a larger percent of our stores". J. C. Penney said it expects to save about $200 million annually from the move.

JCPenney said it would offer early retirement to 6,000 full-time employees, although the company said it would rehire new staff to fill those positions.