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JCPenney extends closure of stores & business offices
01 Apr '20
2 min read
Pic: JC Penney
JCPenney has announced that the company will extend the temporary closure of its stores and business offices due to the COVID-19 pandemic. The leading American department store chain will continue to follow guidance from local, state, and federal officials as it anticipates gradually reopening stores and offices in markets when it is safe to do so.
As a result of its store closures, JCPenney has made the difficult decision to temporarily furlough the majority of store hourly associates, beginning April 2, 2020. During this time, the company will also require a smaller corporate workforce. Beginning April 5, 2020, a significant portion of associates in the company’s home office, Salt Lake City, and Soho design offices will be furloughed, along with its store salaried associates. Many of the company’s associates in supply chain and logistics centres were previously furloughed on March 20, 2020, and those furloughs will continue, according to JCPenney.
All furloughed associates who are currently enrolled in the JCPenney benefits programme will continue to receive full health benefits and the company plans to cover 100 percent of employee-paid premiums for the duration of the furlough. Many impacted associates are also eligible to receive state unemployment benefits, which were recently increased with the passage of the federal stimulus bill.
JCPenney has taken several actions to improve its cash position and financial flexibility during the pandemic, including deferring capital spend, utilising funds available under the revolving credit facility, pausing hiring, cutting spending, reducing receipts, and extending the terms for payment of goods and services. The company has also suspended 2020 merit increases and is evaluating other financial options.
The company’s e-commerce distribution centres and customer care will remain open, fulfilling online orders and answering customer inquiries. The centres will continue to operate by following enhanced social distancing, best practices for sanitisation, and other safety measures. Its international operations continue, while complying with government mandates.
“These are difficult days all across the country and the globe. At JCPenney, we are making tough, prudent decisions to protect both the safety of our associates and the future of our company. We remain optimistic about JCPenney’s ability to weather this pandemic. We also believe these short-term solutions will have a long-term benefit for our associates, customers, and key stakeholders as we look forward to the day that we reopen our doors,” Jill Soltau, chief executive officer of JCPenney said.
As a result of its store closures, JCPenney has made the difficult decision to temporarily furlough the majority of store hourly associates, beginning April 2, 2020. During this time, the company will also require a smaller corporate workforce. Beginning April 5, 2020, a significant portion of associates in the company’s home office, Salt Lake City, and Soho design offices will be furloughed, along with its store salaried associates. Many of the company’s associates in supply chain and logistics centres were previously furloughed on March 20, 2020, and those furloughs will continue, according to JCPenney.
All furloughed associates who are currently enrolled in the JCPenney benefits programme will continue to receive full health benefits and the company plans to cover 100 percent of employee-paid premiums for the duration of the furlough. Many impacted associates are also eligible to receive state unemployment benefits, which were recently increased with the passage of the federal stimulus bill.
JCPenney has taken several actions to improve its cash position and financial flexibility during the pandemic, including deferring capital spend, utilising funds available under the revolving credit facility, pausing hiring, cutting spending, reducing receipts, and extending the terms for payment of goods and services. The company has also suspended 2020 merit increases and is evaluating other financial options.
The company’s e-commerce distribution centres and customer care will remain open, fulfilling online orders and answering customer inquiries. The centres will continue to operate by following enhanced social distancing, best practices for sanitisation, and other safety measures. Its international operations continue, while complying with government mandates.
“These are difficult days all across the country and the globe. At JCPenney, we are making tough, prudent decisions to protect both the safety of our associates and the future of our company. We remain optimistic about JCPenney’s ability to weather this pandemic. We also believe these short-term solutions will have a long-term benefit for our associates, customers, and key stakeholders as we look forward to the day that we reopen our doors,” Jill Soltau, chief executive officer of JCPenney said.
Fibre2Fashion News Desk (GK)
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