Explaining Southern California's economy

JC Penney to close Rancho Cucamonga store (updated)

JCP - 1

Anibal Ortiz / KPCC

J.C. Penney Co. said it would close 33 underperforming stores nationwide, including one in Rancho Cucamonga. This photo was taken at the JCP store in Culver City, which is not affected by the closings.

Update Jan. 23, 2014: J.C. Penney Co. spokesman Joey Thomas said the Rancho Cucamonga furniture outlet, set to close, will relocate to the company's distribution center in Buena Park, about 40 miles away. Thomas said employees will be given the opportunity to transfer, as well as access to a career training class. Eligible employees who don't stay with the company will receive severance benefits, he said.

Previously: J.C. Penney Co. said Wednesday it is shutting down 33 underperforming stores, including one in Rancho Cucamonga.

The company said the closures would bring a cost savings of about $65 million and plans to "focus its resources on the company's highest potential growth opportunities." The retailer said 2,000 jobs would be eliminated.

The affected stores in 20 states will close over the next several months with the last locations shut down by early May. 

"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 JCPenney for future success," said CEO Myron E. Ullman, III in a press release.

The Rancho Cucamonga store is a furniture outlet located in Arrow Plaza. The store, which opened in 2002, employs 32 people and is slated to close in May, according to J.C. Penney. 

The decision to close stores comes as the retailer is recovering from a failed sales strategy in recent years to reduce its coupons and heavy discounts. 

J.C. Penney reported a net loss in the third quarter of $489 million, compared to a net loss of $123 million a year earlier. Sales at stores open at least a year were down 4.8 percent.

The company said it would have pre-tax charges of about $26 million in its fourth quarter and about $17 million in future periods due to the store closures.

The retailer said it would move forward in opening a store in Brooklyn, N.Y.

 

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