According to businessinsider.com, Lubbock is on the list of JCPenney stores “most at risk of closing.” The article this week from businessinsider.com cited Morningstar Credit Ratings as its source.
Lubbock is the only Texas store on the list.
Earlier this month, JCPenney announced that up to 140 stores would close but an official store closing list was not yet released.
“This list is speculation,” said a spokeswoman for the South Plains Mall. “JCPenney has not released their list of closures and while there is no confirmation of stores at risk.”
“We have no reason to believe that South Plains is on the list,” the South Plains Mall said. “Please contact JCPenney corporate for any additional comment.”
A spokesman for JCPenney said in an email, “The Company doesn’t comment on analyst reports or market speculation, and will issue a list of closing locations in mid-March.”
Most of the store closures will happen in the second quarter of 2017 (between April 1 and June 30).
JCPenney also said, “Across the Company, we expect to see a net increase in hiring as the number of full-time associates expected to take advantage of the early retirement incentive will far exceed the number of full-time positions affected by the store closures.”
Prior to announcing store closures, JCPenney released financial results for the fourth quarter of 2016.
In a February 24 statement to investors, JCPenney said, “Comparable store sales were [down] (0.7)% for the fourth quarter and flat for the full year.”
However, earnings for the fourth quarter were slightly higher than expected.
JCPenney previously said, “The stores identified for closure either require significant capital to achieve the Company’s new brand standard or are minimally cash flow positive today relative to the Company’s overall consolidated average.”
In other words, the stores at risk of closure need to be spruced up, or they’re not making enough money.
