JCPenney is shutting down several stores over the next few months, struggling to adapt to market changes.
"While we do not have plans to significantly reduce our store count, we expect a handful of JCPenney stores to close by mid-year," a company spokesperson told FOX Business.
Eight stores across eight states are on the chopping block. The company cited "expiring lease agreements" and "market changes" as reasons for the closures.
SB360 Capital Partners, which oversees liquidation sales, confirmed that stores in California, Colorado, Idaho, Kansas, Maryland, North Carolina, New Hampshire, and West Virginia will close.
The company clarified that the closures have nothing to do with its recent merger with SPARC Group, parent company of brands like Aéropostale and Lucky Brand. The merger was announced last month.
In January, JCPenney and SPARC Group formed Catalyst Brands. The goal is to create a retail powerhouse with six brands under its belt.
Before the merger, JCPenney struggled with declining sales and foot traffic for years. It filed for bankruptcy protection in 2020 during the pandemic, later emerging as a private company owned by Simon Property Group and Brookfield Asset Management.
As part of the bankruptcy deal, JCPenney permanently closed nearly a third of its 846 stores and focused on attracting working families to increase traffic.
CEO Marc Rosen said in 2023 that the company is revamping its product line to be a more affordable option compared to other department stores. JCPenney also announced a $1 billion investment to improve its stores.
Here’s the list of locations set to close:
The Shops at Tanforan in San Bruno, CA
The Shops at Northfield in Denver, CO
Pine Ridge Mall in Pocatello, ID
West Ridge Mall in Topeka, KS
Annapolis Mall in Annapolis, MD
Asheville Mall in Asheville, NC
Mall at Fox Run in Newington, NH
Charleston Town Center in Charleston, WV