JC Penney Closing Stores, Cutting Jobs

By Marc Fortier 

JC Penney announced Wednesday that it is closing 33 "underperforming" stores and cutting 2,000 jobs as part of a turnaround efforts.

Two of the store closings are in Virginia — at Bristol Mall in Bristol, and at Military Circle Mall in Norfolk. Locations at Springfield Mall in Springfield and Fair Oaks Mall in Fairfax are not on the list.

The closures and job cuts are expected to save the company about $65 million a year.

Remaining inventory in the affected stores will be sold over the next several months, with final closings expected to be complete by early May. The company is still moving forward with plans to open a new store location later this year in Brooklyn, N.Y.

"As we continue to progress toward long-term profitable growth, it is necessary to reexamine the financial performance of our store portfolio and adjust our national footprint accordingly," company CEO Mike Ullman III said in a statement. "While it's always difficult to make a business decision that impacts our valued customers and associates, this important step addresses a strategic priority to improve the profitability of our stores and position JC Penney for future success." 

Related Story: Macy's: Five Stores Closing, 2,500 Laid Off