JC Penney Bankruptcy: How Many Stores And Employees Does The Sinking Retail Company Have?

Longtime department store chain J.C. Penney filed for Chapter 11 bankruptcy Friday, the latest retailer to falter amidst the economic turmoil wrought by COVID-19.

The 118-year-old department store chain had long been on the decline with the rest of the brick-and-mortar retail sector, with the recent global pandemic hastening its seeming demise. J.C. Penney, which is nearly $4 billion in debt, is the fourth major U.S. retailer to seek Chapter 11 protection in May.

Despite plans in place to help the company turn around, the news has left the future of its remaining locations and thousands of employees in doubt. While specific numbers are not yet known, J.C. Penney has confirmed its intention to permanently close many of its 846 locations. It will also be laying off a significant portion of its 85,000 employees.

In recent years, market trends have led to numerous high-profile bankruptcies in the retail business, including the likes of Toys ‘R’ Us and Sears.

The global coronavirus pandemic has also led to an increasing rate of bankruptcies, with J.C. Penney joining J. Crew, True Religion, Gold’s Gym, Neiman Marcus and more.

Since 2010, its last profitable year, J.C. Penney has seen total net losses of $4.5 billion dollars. In the last nine years, the company only posted a profit in five quarters, during the holiday shopping seasons, while also closing 20% of its stores and cutting 40% of its staff.

J.C. Penney in late February reported fourth-quarter comparable store sales decreased 7.0%. The Plano, Texas-based company had been cited by analysts for its lack of a successful digital platform. In January, J.C. Penney said would close six stores by April 24 leading many to speculate if the company could see some type of recovery.

The company has borrowed an additional $450 million in order to pay off existing lenders. This move is intended to keep the business stable while it reorganizes and tries to find a way back to profitability.