SHOCKING NEWS

9 comments

Posted on 15th January 2014 by Administrator in Economy |Politics |Social Issues

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Who coulda predicted this development? I hate to tell the new CEO, who was the old CEO, before he was replaced by another CEO, that 33 stores ain’t gonna cut it. He should have added a zero to the 33. That would be their only hope. This piece of shit is going down in flames.

The Wall Street shysters will be telling you to buy the stock tomorrow on this wonderful news, just like they told you to buy it at $40 a few years ago.

Next up. Sears will be announcing they are closing 50 to 100 stores as they reposition themselves for long term growth. And the beat goes on.

Ghost Malls get spookier by the day.

 

The Blistering Recovery Continues: Week After Macy’s, JC Penney Fires 2000, Closes 33 Stores

Tyler Durden's picture

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A week ago, Macy’s fired 2500 and announced the closure of five stores. Moments ago, the company which we have been warnings since late 2012 is a meltin ice cube that ends with bankruptcy, JCPenney, which a week ago provided the following glib summary “JCPenney reported today that the Company is pleased with its performance for the holiday period“, turns out was merely joking and just echoed the Macy’s sentiment, announcing the termination of some 2,000 jobs and the closure of 33 stores.

JCPenney today announced that as part of its turnaround efforts, the Company will be closing 33 underperforming stores across the country in order to focus its resources on the Company`s highest potential growth opportunities.

 

These actions are expected to result in an annual cost savings of approximately $65 million, beginning in 2014. In connection with this initiative, the Company expects to incur estimated pre-tax charges of approximately $26 million in the fourth quarter of fiscal 2013 and approximately $17 million in future periods.

 

Remaining inventory in the affected stores will be sold over the next several months, with final closings expected to be complete by early May. The closings will result in the elimination of approximately 2,000 positions. Eligible associates who do not remain with the Company will receive separation benefits packages. Meanwhile, the Company is continuing its plans to open a new store location later this year at the Gateway II development in Brooklyn, N.Y.

 

“As we continue to progress toward long-term profitable growth, it is necessary to reexamine the financial performance of our store portfolio and adjust our national footprint accordingly,” said Myron E. (Mike) Ullman, III, chief executive officer of JCPenney. “While it`s always difficult to make a business decision that impacts our valued customers and associates, this important step addresses a strategic priority to improve the profitability of our stores and position JCPenney for future success.”

What can one say but: this is just the kind of recovery that justifies an S&P500 at all time highs.

Investors initially cheered… but now not so much…

9 Comments
  1. Nick. A says:

    Recovery for “some” but not for “others”. Seeing as the members of the US Congress are immune from Insider Trading legislation, one wonders how much they (and those connected to them) have made from privileged inside information over the years.

    You don’t become a millionaire that easily, and many (the majority?) have no real skills or ability, do they . .

    15th January 2014 at 5:09 pm

  2. Anonymous says:

    I was at the local mall today. Few people really shopping (spending). A new Chinese restaurant opened its doors a month or two ago there and it’s doing very poorly. It’s a nice place too with a significant start-up cost I’m sure.

    15th January 2014 at 6:40 pm

  3. Hope@ZeroKelvin says:

    Woah pony.

    Of course, our Conroe JC Penney decided to open across the freeway from a major discount outlet mall, a real phi beta kappa move. I never see anybody in that parking lot.

    But still with all these people out of a job, the unemployment rate is going to really drop like a rock now!!!!!

    15th January 2014 at 7:10 pm

  4. Kill Bill says:

    This reminds me of the first mall in Texas with 50, count them, 50, inside air conditioned shops.

    Before its final throes it became a mecca for indoor exercise. No, I dont mean 24hr fitness, but it was also pro-rascal.

    People came to the mall just so they could walk in an air-conditioned area. They didnt buy shit.

    Now its returned to its former grace. Just an open field.

    15th January 2014 at 7:26 pm

  5. Kill Bill says:

    But still with all these people out of a job, the unemployment rate is going to really drop like a rock now!!!!! -HZK

    Not to worry, tapering, or the cancellation of, will solve all this.

    [snark/on]

    15th January 2014 at 7:29 pm

  6. Thinker says:

    LIST OF STORE CLOSINGS

    Selma, Ala. — Selma Mall

    Rancho Cucamonga, Calif. — Arrow Plaza

    Colorado Springs — Chapel Hills Mall

    Meriden, Conn. — Meriden Square

    Leesburg, Fla. — Lake Square Mall

    Port Richey, Fla. — Gulf View Square

    Muscatine, Iowa — Muscatine Mall

    Bloomingdale, Ill. — Stratford Square Mall

    Forsyth, Ill. — Hickory Point Mall

    Marion, Ind. — Five Points Mall

    Warsaw, Ind. — Marketplace Shopping Center

    Salisbury, Md. — The Centre at Salisbury

    Marquette, Mich. — Westwood Plaza

    Worthington, Minn. — Northland Mall

    Gautier, Miss. — Singing River Mall

    Natchez, Miss. — Natchez Mall

    Butte, Mont. — Butte Plaza Shopping Center

    Cut Bank, Mont.

    Kinston, N.C. — Vernon Park Mall

    Burlington, N.J. — Burlington Center

    Phillipsburg, N.J. — Phillipsburg Mall

    Wooster, Ohio — Wayne Towne Plaza

    Exton, Pa. — Exton Square Mall

    Hazleton, Pa. — LaurelMall

    Washington, Pa. — Washington Mall

    Chattanooga — Northgate Mall

    Bristol, Va. — Bristol Mall

    Norfolk, Va. — Military Circle Mall

    Fond du Lac, Wis., Forest Mall

    Janesville, Wis. — Janesville Mall

    Rhinelander, Wis. — Lincoln Plaza Center

    Rice Lake, Wis. — Cedar Mall

    Wausau, Wis. — Wausau Mall

    15th January 2014 at 9:11 pm

  7. Iska Waran says:

    Looks like it was mostly small town stores getting shuttered. At our local Penney, the clientele is 1/2 Somali, 1/2 Mexican and 1/2 everybody else. The workers are almost all Somali. It’s about the only clothing store I like, but I’m a mess.

    15th January 2014 at 11:21 pm

  8. ZombieDawg says:

    Worth knowing this one..

    http://www.dailyjobcuts.com/

    15th January 2014 at 11:39 pm

  9. TeresaE says:

    HOW can this be true!?!

    Just yesterday Yahoo Finance was running an article saying that growth in retail was “healthy” over the holidays.

    Yet results are dismal and even the “beats” are not equating to growth when you continue the (very real) increase in costs/inflation.

    This slow moving train wreck is quite the sight to behold.

    Fast enough the brightest see the writing on the wall, but slow enough for the masses to keep believing that the sun will come out tomorrow.

    We traded our kids’ prosperity for shiny gadgets made in Asia. At least we are getting stuff cheap – for now.

    Once China gets tired of buying the worlds’ resources to resell to us, we will find the truth.

    No country can survive well on government contracts and imported crap.

    Which is basically all we have left here. Mandates and Asian-made poisons.

    Ponzi on.

    16th January 2014 at 9:27 am

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