J.C. Penney To Close Up To 140 Stores, Offer Buyouts

J.C. Penney To Close Up To 140 Stores Offer BuyoutsJ.C. Penney plans to close up to 140 stores and offer buyouts to 6,000 workers as the department-store industry sags in competition with online sellers and nimble niche retailers.

The company said Friday that it would shutter 13% to 14% of its stores, representing about 5% of its annual sales, and two distribution centers.

The cuts come amid mounting challenges for once-stalwart department-store chains such as Macy’s and Sears, which are aggressively closing stores and shedding costs as shoppers flock to alternatives.

Penney expects to save $200 million in annual costs in connection with the plan but will record an initial pre-tax charge of $225 million to cover the closure costs.