J.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 company did not immediately say if any stores in Ohio would close.
The retailer 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.
In a related move, Penney said it would offer a “voluntary early retirement program” to about 6,000 workers, including corporate, store and supply chain workers.
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.
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Article Courtesy of USA Today, KING-TV Seattle, and WKYC Channel 3 News Cleveland
Picture Courtesy of Kena Betancur and Getty Images