J.C. Penney’s Sad Story Of Going Broke Slowly, Then Suddenly (2024)

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J.C. Penney’s Sad Story Of Going Broke Slowly, Then Suddenly (2024)


J.C. Penney’s Sad Story Of Going Broke Slowly, Then Suddenly? ›

Gradually, then suddenly.” J.C. Penney's demise mirrors just that. It was a slow-moving retail trainwreck that lasted for years, then Covid-19 quickly pushed it over the edge into bankruptcy. The saga of J.C. Penney is emblematic of the pandemic era.

Is JCPenney struggling financially? ›

J.C. Penney emerged from bankruptcy in December 2020 with new owners, less debt and about 200 fewer stores.

What is the JCPenney controversy? ›

JC Penny, for example, has been hit with a class action lawsuit in the Southern District of California over its alleged advertising practice of using “false reference pricing.” The three-count complaint claims the nationwide retailer violated California's Unfair Competition Laws, False Advertising Laws, and Consumer ...

What is the story behind JCPenney? ›

JCPenney was founded in Kemmerer, Wyoming, in 1902 by James Cash Penney. The first store, named The Golden Rule, set the standard by which we have operated for over a century – to treat others as we would like to be treated.

What caused the downfall of JCPenney? ›

JCPenney has struggled with financial issues for years, including declining sales and mounting debt. These financial issues made it difficult for the company to invest in its stores and compete with other retailers.

How much debt was JCPenney in? ›

JCPenney's debt of about $4 billion forced it into bankruptcy in May 2020. It now has $485 million in long-term debt and liquidity of $1.5 billion. Long-term debt was reduced by $500 million in December 2021.

Is JCPenney going to survive? ›

JCPenney is the latest department store to announce a major turnaround plan. JCPenney says it plans to funnel $1 billion back into the business by fiscal 2025 to redo its website and app, carry out store upgrades and create a new inventory management system.

Who owns JCPenney now? ›

In late 2020, Simon Property Group (SPG) and Brookfield Asset Management (BAM)—two of the nation's largest property owners—purchased the company for $800 million. At the time of the bankruptcy, JCPenney held $4 billion in debt.

Will JCPenney make a comeback? ›

JCPenney unveils plans for $1 billion remodeling of stores and website upgrade. JCPenney said Thursday it plans to spend more than $1 billion by the end of 2025 in a bid to revive the storied but troubled 121-year-old department store chain.

What went wrong with JCPenney? ›

The people that loved Penny's were lower middle class women, basically moms, who wanted to snag a deal on clothes and homewares. By creating a retail experience that looked, sounded, and felt different, JCP's core customers were alienated. The psychology behind this is something called the Self-Reference Effect.

What religion was JCPenney? ›

After hearing the hymn "God Will Take Care of You", written by Civilla D. Martin, sung at a service in the hospital's chapel, he became a born-again Christian. Even after relinquishing daily operating management of the company, Penney continued his active involvement in managing the company and its stores.

Who is the bad CEO of JCPenney? ›

JCPenney CEO Ron Johnson is out of the company, according to CNBC, after just 17 months on the job. His Q4 2012 was probably the worst quarterly performance ever in the history of major retail: same-store sales were down 32 percent, to $3.8 billion. By late February, the stock was down 46 percent on the year.

Where is JCPenney buried? ›

James Cash Penney died in New York City on February 12, 1971, at the age of ninety-five. He is buried at Woodlawn Cemetery in the Bronx.

Is JCPenney still making money? ›

Holiday and full-year sales fell, and net income plunged. But the CEO of one of the retailer's owners says its ongoing profitability could merit an expansion.

Who owns Penny's? ›

How did JCPenney lose its target audience? ›

Johnson concluded that the Penney stores were tired and their merchandise lineup was stale. He also concluded that the JCP customers had been trained to wait for sales and coupons, and they seldom paid full price.

When did JCPenney go out of business? ›

With virtually all of its stores closed amid a nationwide lockdown, in May 2020, JCPenney's holding company filed for bankruptcy protection. It was a hard landing for this once-prominent retail giant that, at its height in 1973, operated more than 2,000 stores.

How did JCPenney survive? ›

JCPenney was rescued from bankruptcy that same year after Simon Property Group and Brookfield Property Partners acquired the company for $800 million. Rosen took the helm at JCPenney the following year after serving as executive vice president and president of Levi Strauss Americas.

Why did JCPenney's strategy of everyday low prices backfire? ›

The depths of the recession made this everyday-low-prices strategy difficult to carry out. Customer traffic dropped sharply, and without that, JC Penney and Johnson were clearly in trouble.


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