JCPenney Announces New Round of Closures—7 Stores Shutter May 25

• JCPenney (owned by Simon Property Group, SPG) will close seven stores on May 25 in states including California, Colorado, and West Virginia, following over 200 closures since its May 2020 Chapter 11 bankruptcy.
• The retailer, acquired by Simon Property Group (SPG) and Brookfield Asset Management (BAM) in December 2020, formed Catalyst Brands with Forever 21 and others, planning 1,800 stores and 60,000 employees.
• Catalyst Brands is cutting 9% of corporate roles to optimize operations, though JCPenney’s store closures, including an extended lease in Maryland until August 31, are unrelated to the merger.

JCPenney, a storied American retailer, continues to navigate a challenging retail landscape, with seven store closures scheduled for May 25 across locations in California, Colorado, Idaho, Kansas, New Hampshire, North Carolina, and West Virginia, as confirmed by a company spokesperson to USA TODAY on Monday, May 19. These closures, affecting stores such as The Shops at Tanforan in San Bruno and Charleston Town Center in West Virginia, follow the shuttering of over 200 U.S. locations since JCPenney’s Chapter 11 bankruptcy filing in May 2020. The retailer was acquired by Simon Property Group (SPG) and Brookfield Asset Management Inc. (BAM) in December 2020, a move that provided financial stability but did not halt the need for operational restructuring.

In January, JCPenney announced a strategic merger with SPARC Group, forming Catalyst Brands, a new entity encompassing iconic retail names like Forever 21, Brooks Brothers, Aéropostale, Lucky Brand, Nautica, and Eddie Bauer. This consolidation aims to create a robust portfolio with plans to operate 1,800 store locations and employ 60,000 workers, signaling an ambitious vision for growth despite ongoing challenges. A Catalyst Brands spokesperson noted to USA TODAY that the company is optimizing its structure, resulting in a 9% reduction in corporate roles, though JCPenney clarified that the store closures are unrelated to the merger.

The retail sector faces persistent headwinds, including shifting consumer preferences toward e-commerce and economic pressures impacting discretionary spending. JCPenney’s decision to extend its lease at the Westfield Annapolis Mall in Maryland through August 31 reflects efforts to balance closures with strategic market presence. The formation of Catalyst Brands positions JCPenney to leverage shared resources and brand synergies, aiming to revitalize its market position while addressing the realities of a contracting brick-and-mortar footprint.

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