JCPenney to Close More Stores in 2025
JCPenney has confirmed plans to close additional stores in 2025, stating that the closures are not related to the recent Catalyst Brands merger. The closures come as part of an ongoing strategy to optimize operations amid changing market conditions.
Why It Matters
According to Coresight Research, around 15,000 retail stores are expected to close in 2025, more than doubling the 7,325 store closures in 2024.
- Retailers such as Big Lots, Party City, Kohl’s, and Macy’s are also conducting liquidation sales as they shutter locations.
JCPenney Store Closures – The Big Picture
- JCPenney is closing eight stores, which accounts for less than 2% of its 650+ locations.
- A company spokesperson stated, "We do not have plans to significantly reduce our store count, but we expect a handful of stores to close by mid-year."
Reasons Behind the Closures
JCPenney emphasized that store closures are driven by factors such as:
- Expiring lease agreements
- Market changes
- Other operational considerations
"The decision to close a store is never an easy one, but isolated closures do happen from time to time," the spokesperson explained.
JCPenney’s Financial History & Bankruptcy Recovery
- May 2020: JCPenney filed for Chapter 11 bankruptcy protection amid financial struggles.
- Since then, about 200 locations have closed as part of restructuring.
- The company exited bankruptcy after being acquired by Simon Property Group and Brookfield Asset Management Inc.
Recent Merger & Future Outlook
- In January 2025, JCPenney announced a merger with retail operator Sparc to form Catalyst Brands, a new U.S. retailing powerhouse.
- Despite this merger, JCPenney insists that the current closures are independent of the deal..
