JCPenney Layoffs and Warehouse Closure
JCPenney is laying off 296 workers as it closes a warehouse north of Fort Worth, according to filings with the state. The news comes amid financial turmoil for the department store chain.
According to a WARN notice filed with the Texas Workforce Commission, the JCPenney Alliance Regional Logistics Center at 1701 Intermodal Parkway in Haslet will close, and workers will be laid off in two waves: the first between Aug. 1 and Aug. 14, and the second between Nov. 1 and Nov. 14. The entire warehouse will close “on or about” Nov. 1.
Background on the Closure
The closure comes months after the Plano-based retailer merged with Sparc Group to form Plano-based umbrella company Catalyst Brands. Sparc Group owned many familiar brands, such as Aeropostale, Eddie Bauer and Brooks Brothers.
“JCPenney is always seeking ways to adapt and enhance our operations with the goal of providing a better experience for our customers. After a thorough review of our organization, we’ve made the difficult decision to close our JCPenney Alliance Regional Logistics Center,” JCPenney said in a statement.
Impact on Employees
“While this decision was difficult, it was necessary to build a stronger, more competitive company. We appreciate the contributions of all affected associates, who had been previously notified of our decision, and are committed to supporting them with transition resources, including severance and benefits.”
Since the January merger, JCPenney has announced the closure of eight stores and cuts of 5% and 9% to corporate jobs. The Dallas Morning News reported in December that sales had slipped by 8% year over year in the quarter ended Nov. 2. Sales had also decreased during the previous two quarters, and the company posted a net loss.
Financial Performance
In May, financial documents for the year confirmed the trend, though the company touted “numerous bright spots” as it looked toward its first fiscal year as Catalyst Brands.
The company’s financial performance has been a concern for some time, with declining sales and net losses. The closure of the warehouse and layoffs are likely an attempt to reduce costs and improve efficiency.
Update on the Story
Update at 12:40 p.m.: This story has been updated to include information from the company’s WARN notice.
The latest on retail openings, closings and trends in D-FW can be found in the D-FW Retail News section.
Related News
JCPenney is trying to reinvent itself again. Will it work this time? The company has been working to revamp its image and improve its financial performance, but it remains to be seen whether these efforts will be successful.
Conclusion
The closure of the JCPenney Alliance Regional Logistics Center and layoffs of 296 workers are the latest developments in the company’s efforts to improve its financial performance. While the decision was difficult, the company believes it is necessary to build a stronger, more competitive company. The impact on employees will be significant, but the company is committed to supporting them with transition resources.
Frequently Asked Questions
Q: How many workers will be laid off? A: 296 workers will be laid off in two waves: the first between Aug. 1 and Aug. 14, and the second between Nov. 1 and Nov. 14.
Q: Why is the warehouse closing? A: The warehouse is closing as part of the company’s efforts to improve its financial performance and build a stronger, more competitive company.
Q: What support will be provided to affected employees? A: The company is committed to supporting affected employees with transition resources, including severance and benefits.
Q: What is the current state of JCPenney’s financial performance? A: The company has been experiencing declining sales and net losses, but is working to revamp its image and improve its financial performance.
