The well-known department store JC Penney is closing one of its stores in Alabama. After this closure, only nine JC Penney stores will remain open across the state.
On Friday, a sign announcing the store's closure was placed on the building.
JCPenney Shuts Mobile Store, Only Nine Remain
National retailer JCPenney is closing its store in Mobile, Alabama. On Friday, images showing a "closing" sign over the front of the store were shared widely on social media.
According to AL, the store is located at the Shoppes at Bel Air and has been a key part of the shopping center since it helped expand the mall in 1974, making it the largest in the state until Riverchase Galleria was built.
A spokesperson for the company mentioned that the store will shut down by September 22. They explained that the closure was due to the inability to continue with the current lease terms and the failure to find a suitable alternative location in the area.
The spokesperson thanked the store's dedicated staff and loyal customers who have supported the Mobile location over the years.
The remaining JCPenney stores in Alabama are located in Alabaster, Dothan, Fultondale, Hoover, Montgomery, Oxford, Prattville, Tuscaloosa, and Trussville, as listed on the company's corporate website.
In 2020, A document filed with the Securities and Exchange Commission on Monday revealed that JCPenney plans to close about 29% of its 846 stores, which amounts to 242 locations, over the current and next fiscal year.
U.S.A Today reports that the document specifies that 192 stores will close by the end of the current fiscal year in February, and another 50 of their networks will close in the following fiscal year. After these closures, JCPenney will remain.
In the filing, JCPenney indicated that the remaining 604 stores are the most sales-generating, profitable, and productive in their network.
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Express Files for Bankruptcy, Closes Stores
The U.S. Sun posted that clothing retailer Express has filed for bankruptcy and announced plans to close over 100 locations. The company filed for Chapter 11 bankruptcy in April and has launched liquidation sales offering discounts of up to 80%.
Two Express stores in Paramus, New Jersey, are holding closing sales. An employee confirmed that the Garden State Plaza Mall location will close by the end of June.
Express also owns Bonobos, and although it initially appeared unaffected, some Bonobos stores have also closed.
The bankruptcy filing will lead to the closure of about 95 Express stores and all UpWest Express locations. There are currently 530 Express stores nationwide.
Understanding Bankruptcy: How It Works
Bankruptcy is a legal process that helps companies deal with debt they can't repay. It allows businesses to start over and access new credit. According to Investopedia, federal courts supervise bankruptcies, making it easier for companies to sell their assets to pay off creditors.
There are different types of bankruptcy processes.
Chapter 11 is commonly used by companies to restructure and keep operating, even if they need to sell most of their properties. Chapter 7 involves selling a company's assets, effectively putting it out of business.
According to the United States Courts, chapter 15 allows American and foreign courts to work together on bankruptcy cases involving parties from more than one country.
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