J.C. Penney to shut some stores, end catalog
The first J.C. Penney store opened in Manhattan in 2009. (July 31, 2009) Credit: Getty Images
J.C. Penney Co. Inc. is getting rid of its catalog business and closing some stores, outlets and call-center locations to streamline operations and boost profits.
The Plano, Texas-based department store operator also said Monday Vornado Realty Trust chairman Steven Roth and activist investor William Ackman will become board members. Penney's enacted a poison pill in October after Ackman and Vornado took large stakes in the company.
Ackman and his hedge fund, Pershing Square Management, have pushed for major changes at retailers he holds stakes in, such as Borders Group Inc. and Target Corp.
Penney plans to close six underperforming stores - none of which is on Long Island - and two call-center locations.
The retailer's exit of its legacy catalog business includes shuttering 19 outlet stores that carry a large amount of catalog merchandise. It is also reorganizing its custom decorating business. The retailer said it expects the moves to add about 7 cents per share to 2012 earnings. Shares rose $2.18 yesterday to close at $32.52.
The number of job cuts in the actions, which will take place over the course of the year, was not disclosed. - AP
Sarra Sounds Off, Season 3, Ep 3: Top football teams in action, fantasy update and plays of the week Gregg Sarra sounds off on the Northport and Half Hollow Hills East matchup, plus Tess Ferguson has an update on the high school fantasy football standings and Jared Vailuzzi has the plays of the week.
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