After settling a long-standing legal battle, JCPenney has announced additional unfortunate news.
The company confirmed the upcoming closure of two major stores, both scheduled to shut down simultaneously.
JC Penney's Dual Store Closures Amid Renovation Plans
JCPenney has recently announced the closure of two more anchor stores, both set to close on the same day. Employees at the Shenango Valley Mall in Pennsylvania were informed about the impending closure of their store.
This news comes shortly after the retailer, which had previously faced bankruptcy, revealed plans to invest over $1 billion in in-store improvements by the end of 2025, according to a report from The Sun.
However, not all JCPenney's 667 stores will benefit from these improvements. The Shenango Valley Mall had sought to evict JCPenney as part of its property renovation plans, leading to a legal dispute between the mall and the retailer.
Following a protracted legal battle, a judge has decided to favor the mall, impacting JCPenney's operations. In a striking coincidence, JCPenney is facing the closure of another anchor store on the exact day the Shenango Valley Mall location is scheduled to shut down permanently.
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JCPenney Announces Closure Amidst Mall Exodus
JCPenney has declared the forthcoming shutdown of its store at Crystal Mall in Waterford, Connecticut. This closure follows a trend seen with retailers like Macy's, Sears, and Bed Bath & Beyond, who have also left the mall.
Representing the brand, a spokesperson stated, "We continue to strive in serving America's diverse, working families, inviting them to visit our other JCPenney stores in the region."
This decision also stems from a legal disagreement with the mall management.
The Connecticut store and another location are set to hold their final sales on May 5, 2024.
However, local shoppers have a silver lining to look forward to. The closures are leading to significant liquidation sales at the Connecticut store, with discounts up to 50% off.
Despite these closures, JCPenney remains optimistic about the future and invites customers to frequent other stores. The company is moving forward with extensive renovation plans across the remaining locations.
Meanwhile, in a recent report in January, Gary Hinkson, the City Manager of Hermitage, revealed that JCPenney had not directly informed the city about its store closure. However, the town was approached last Friday by representatives from Gordon Brothers, inquiring about the procedures for conducting a store closing sale.
Hinkson explained that sales of this nature, where a business sells off its inventory before shutting down, are under state regulation.
It's noteworthy that until recently, JCPenney was embroiled in a five-year legal battle with the owners of Shenango Valley Mall. Local authorities have mentioned that this prolonged dispute hindered the mall's redevelopment efforts.
The conflict between JCPenney and the mall's owners originated from a 1967 agreement with the mall's initial owner, Crown Construction Co. JCPenney contended that this agreement granted them the right to approve any mall developments impacting their store.
Throughout the lawsuit, the Mercer County Court of Common Pleas and the Pennsylvania State Superior Court ruled against JCPenney. The prolonged legal battle finally ended in October, with the Pennsylvania State Supreme Court ruling in favor of the mall's current owners, Butterfli Holdings LLC, a subsidiary of Flicore LLC.
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