Darth Mall Strikes Again! JC Penney To Close 130-140 Stores (And 2 Distribution Centers)

This is a syndicated repost courtesy of Confounded Interest. To view original, click here. Reposted with permission.

J.C. Penney announced Friday that it would close up to 140 stores in the next couple months.

Why? Persistent negative earnings is a tip-off.

 That follows decisions by Macy’s and Sears to close a collective 218 stores in the first half of the year. Other mall-based stores including American Apparel, The Limited, Bebe, BCBG, and Payless have also recently announced that they are shutting down all or most of their stores.
JC Penney is another victim of the terrible recovery from The Great Recession (and Amazon/other online retailers). Just as wage earners suffered from the worst wage recovery in modern history.
They were flying high in early 2008 at over $80 per share. Now they are trading at just under $7 per share.

Oh no! Where am I going to get my Michael Strahan Collection clothing??

Darth Mall strikes again! Watch for less than Tier 1 malls to see significant store closures.

(Bloomberg Intelligence) — Bonds of mall REIT CBL & Associates (rated Baa3/BBB-/BBB-) trade at the wide end of the mall peer group. Its portfolio, which is more weighted toward Tier 2 and Tier 3 malls in middle markets, may be more exposed to potential store closings of struggling retailers such as Sears and Macy’s. Management has been trying to paint a clearer picture, however, by selling older assets, paying down debt and purchasing assets from retailers where it sees good redevelopment opportunities.

Despite reductions, CBL Malls had 53 J.C. Penney locations, 46 Sears, 38 Macy’s, 49 Abercrombie & Fitch and 60 Gap-branded stores in its footprint as of December.

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