AARoads Forum

Please login or register.

Login with username, password and session length

Author Topic: J. C. Penney files for Ch. 11 Bankruptcy  (Read 3761 times)

jdb1234

  • *
  • Offline Offline

  • Posts: 581
  • Age: 32
  • Location: Birmingham, AL
  • Last Login: January 18, 2021, 06:57:36 PM
Re: J. C. Penney files for Ch. 11 Bankruptcy
« Reply #75 on: June 05, 2020, 10:29:26 AM »

Biggest surprise to me:
The JC Penney in Andalusia, AL lasted this long.
Logged

SEWIGuy

  • *
  • Offline Offline

  • Posts: 1863
  • Last Login: October 05, 2020, 07:52:39 PM
Re: J. C. Penney files for Ch. 11 Bankruptcy
« Reply #76 on: June 05, 2020, 10:38:30 AM »

Biggest surprise to me:
The JC Penney in Andalusia, AL lasted this long.


I think you would be surprised at the profitability of some of these out of the way stores.  We had a K-Mart that hung on longer than most in the 10,000 sized town I lived in prior to living here.  I believe it was one of the last two or three in Wisconsin.  Loyal customers and a good lease.
Logged

mgk920

  • *
  • Offline Offline

  • Posts: 3936
  • Location: Appleton, WI USA
  • Last Login: January 18, 2021, 04:15:09 AM
Re: J. C. Penney files for Ch. 11 Bankruptcy
« Reply #77 on: June 05, 2020, 12:03:35 PM »

The store at Fox River Mall here in the Appleton, WI area survives, but that mall has already lost two department stores in recent years (Sears and Younkers) and their Macy's is looking very threadbare....

Mike
Logged

catch22

  • *
  • Offline Offline

  • Posts: 290
  • Location: SE Michigan
  • Last Login: January 18, 2021, 08:32:18 PM
Re: J. C. Penney files for Ch. 11 Bankruptcy
« Reply #78 on: June 05, 2020, 12:52:39 PM »

The store at Fox River Mall here in the Appleton, WI area survives, but that mall has already lost two department stores in recent years (Sears and Younkers) and their Macy's is looking very threadbare....

Mike

Similarly, I was surprised that the nearest JCP to me (Westland, MI) made the cut.  Westland Mall lost its Macy's a couple of years ago, the Sears store is one of the last in the state (and may never reopen), which would leave Kohl's as the lone anchor.  Both JCP and Kohl's have standalone stores about 4 miles away, so I'm expecting them both to jump ship at some point.  The inline stores in the mall are starting to thin out some too.
« Last Edit: June 05, 2020, 06:22:25 PM by catch22 »
Logged

vdeane

  • *
  • *
  • Offline Offline

  • Posts: 11522
  • Age: 29
  • Location: Latham, NY
  • Last Login: January 18, 2021, 10:29:52 PM
    • New York State Roads
Re: J. C. Penney files for Ch. 11 Bankruptcy
« Reply #79 on: June 05, 2020, 01:29:36 PM »

A couple of others that I'm surprised aren't on the "to be closed" list - the one near Massena (the mall there is basically dead even though it's right on the border, and with international travel likely to be one of the last things to come back, I don't see how it can survive), and the one in Marketplace Mall (it's the last original anchor - Sears, Macey's, and the Bon Ton all left) near Rochester.
Logged
Please note: All comments here represent my own personal opinion and do not reflect the official position of NYSDOT or its affiliates.

Konza

  • *
  • Offline Offline

  • Posts: 301
  • Age: 63
  • Location: Southeast Arizona
  • Last Login: January 18, 2021, 03:56:36 PM
Re: J. C. Penney files for Ch. 11 Bankruptcy
« Reply #80 on: June 05, 2020, 01:44:21 PM »

Interesting that in Arizona they are closing one store in Tucson and one in Phoenix, but the two stores along the international border, Douglas and Nogales, are not on the list.  I've always found it interesting that there is not a JCP in Sierra Vista, which is bigger than both of them (and has an open mall space since Sears closed) but does not have a larger city immediately south of it in Mexico.

Closing stores in multi-store markets is tricky, because fewer stores remain in the market among which to divide the market-wide expenses like advertising.
Logged
Main Line Interstates clinched:  4, 8, 11, 12, 17, 19, 20, 30, 39, 43, 45, 57, 68, 72, 78, 80, 88 (IL)

hbelkins

  • *
  • *
  • Offline Offline

  • Posts: 15150
  • It is well, it is well, with my soul.

  • Age: 59
  • Location: Kentucky
  • Last Login: January 18, 2021, 03:49:53 PM
    • Millennium Highway
Re: J. C. Penney files for Ch. 11 Bankruptcy
« Reply #81 on: June 05, 2020, 08:40:43 PM »

Danville, Ky., surprised me. That store has always been one where I could find decent values. I figured either Hazard or Mt. Sterling would close before Danville.
Logged

ftballfan

  • *
  • Offline Offline

  • Posts: 1673
  • Age: 28
  • Location: Manistee, MI
  • Last Login: January 17, 2021, 01:34:37 PM
Re: J. C. Penney files for Ch. 11 Bankruptcy
« Reply #82 on: June 05, 2020, 11:51:27 PM »

Biggest surprise to me:
The JC Penney in Andalusia, AL lasted this long.


I think you would be surprised at the profitability of some of these out of the way stores.  We had a K-Mart that hung on longer than most in the 10,000 sized town I lived in prior to living here.  I believe it was one of the last two or three in Wisconsin.  Loyal customers and a good lease.
I was surprised to see Big Rapids and Owosso in Michigan both keeping their JCPenney's for now (they're both downtown locations).
Logged

Pink Jazz

  • *
  • Offline Offline

  • Posts: 1511
  • Real Men Wear Pink

  • Age: 33
  • Location: Queen Creek, AZ
  • Last Login: January 18, 2021, 03:14:56 PM
Re: J. C. Penney files for Ch. 11 Bankruptcy
« Reply #83 on: June 07, 2020, 11:46:09 AM »

Interesting that in Arizona they are closing one store in Tucson and one in Phoenix, but the two stores along the international border, Douglas and Nogales, are not on the list.  I've always found it interesting that there is not a JCP in Sierra Vista, which is bigger than both of them (and has an open mall space since Sears closed) but does not have a larger city immediately south of it in Mexico.

Closing stores in multi-store markets is tricky, because fewer stores remain in the market among which to divide the market-wide expenses like advertising.


Note that profitability alone isn't the only factor in determining store closures when there are multiple stores in proximity.  Sometimes they may choose to close the store with the shorter lease and keep the store with a longer existing lease, instead of renewing the lease even if that store is more profitable.  This is important during bankruptcy because if you liquidate you don't want to be stuck with long-term leases.
Logged

Konza

  • *
  • Offline Offline

  • Posts: 301
  • Age: 63
  • Location: Southeast Arizona
  • Last Login: January 18, 2021, 03:56:36 PM
Re: J. C. Penney files for Ch. 11 Bankruptcy
« Reply #84 on: June 07, 2020, 10:47:38 PM »

Interesting that in Arizona they are closing one store in Tucson and one in Phoenix, but the two stores along the international border, Douglas and Nogales, are not on the list.  I've always found it interesting that there is not a JCP in Sierra Vista, which is bigger than both of them (and has an open mall space since Sears closed) but does not have a larger city immediately south of it in Mexico.

Closing stores in multi-store markets is tricky, because fewer stores remain in the market among which to divide the market-wide expenses like advertising.


Note that profitability alone isn't the only factor in determining store closures when there are multiple stores in proximity.  Sometimes they may choose to close the store with the shorter lease and keep the store with a longer existing lease, instead of renewing the lease even if that store is more profitable.  This is important during bankruptcy because if you liquidate you don't want to be stuck with long-term leases.

However:

Anchor stores in shopping centers generally have long initial leases with a string of fairly long options to extend, often at favorable rents.  If the location has promise for another tenant, the original tenant can sublease or assign the lease to that successor tenant, often at a profit, should the lease allow that.

Furthermore, bankruptcy gives tenant the opportunity to renegotiate contracts, including leases.  At some locations, such an opportunity might be one of the factors that could keep a marginal location open.
Logged
Main Line Interstates clinched:  4, 8, 11, 12, 17, 19, 20, 30, 39, 43, 45, 57, 68, 72, 78, 80, 88 (IL)

catch22

  • *
  • Offline Offline

  • Posts: 290
  • Location: SE Michigan
  • Last Login: January 18, 2021, 08:32:18 PM
Re: J. C. Penney files for Ch. 11 Bankruptcy
« Reply #85 on: June 23, 2020, 12:44:41 PM »

JCP adds 13 more stores to the closure list:

Michigan: Greenville, Owosso, Big Rapids, Alma, Bay City, Mt. Pleasant and Okemos

New York:  Bay Shore and Poughkeepsie

Washington: Omak and Sunnyside

Maryland: Hyattsville

California: Concord

https://www.cnn.com/2020/06/23/business/jcpenney-store-closings/index.html
Logged

kevinb1994

  • *
  • Offline Offline

  • Posts: 1350
  • Age: 26
  • Location: Near Fort Caroline
  • Last Login: January 18, 2021, 03:00:26 PM
Re: J. C. Penney files for Ch. 11 Bankruptcy
« Reply #86 on: June 24, 2020, 09:04:34 PM »

JCP adds 13 more stores to the closure list:

Michigan: Greenville, Owosso, Big Rapids, Alma, Bay City, Mt. Pleasant and Okemos

New York:  Bay Shore and Poughkeepsie

Washington: Omak and Sunnyside

Maryland: Hyattsville

California: Concord

https://www.cnn.com/2020/06/23/business/jcpenney-store-closings/index.html
Ouch, that must hurt for Michigan...
Logged

 


Opinions expressed here on belong solely to the poster and do not represent or reflect the opinions or beliefs of AARoads, its creators and/or associates.