JCPenney Confirms Store Closures Across Seven States
Retail giant JCPenney has announced the closure of seven store locations across as many states, with plans to finalize the shutdowns by the end of May 2025. This development marks a shift from an earlier announcement in February, when the company listed eight locations for closure. In a recent update, the retailer confirmed that its Westfield Annapolis Mall location in Maryland will remain open through at least August 31, 2025, following a lease extension agreement. Ongoing negotiations with the landlord could result in a long-term lease.
The company clarified that these closures are “isolated” and reassured the public that there are no immediate plans to substantially reduce the number of physical stores. A company representative emphasized that the decision to close the seven stores is not linked to JCPenney’s recent merger with SPARC Group, the retail powerhouse behind brands such as Aéropostale, Brooks Brothers, Eddie Bauer, Lucky Brand, and Nautica.
The stores set to close include locations at:
- The Shops at Tanforan in San Bruno, California
- The Shops at Northfield in Denver, Colorado
- Pine Ridge Mall in Pocatello, Idaho
- West Ridge Mall in Topeka, Kansas
- Mall at Fox Run in Newington, New Hampshire
- Asheville Mall in Asheville, North Carolina
- Charleston Town Center in Charleston, West Virginia
Strategic Merger and Renewed Business Vision
In January 2025, JCPenney completed a merger with the SPARC Group to form Catalyst Brands, a unified retail group encompassing six major American fashion brands. Marc Rosen, the former CEO of JCPenney and now head of Catalyst Brands, called the partnership a strategic step toward combining legacy retail power with a modern business approach. “Together, we bring scale, expertise and broad appeal to customers across America,” Rosen said.
He emphasized the company’s renewed focus on providing quality fashion for all occasions, supported by industry-leading talent and shared resources across the brands. The merger, according to executives, is aimed at revitalizing the company’s operations and consumer reach following several challenging years.
JCPenney previously filed for Chapter 11 bankruptcy during the COVID-19 pandemic, citing overwhelming debt and the need to reassess its business model. At the time, then-CEO Jill Soltau expressed optimism, stating the company would emerge from the pandemic stronger and more aligned with customer needs under a renewed business strategy.
Wider Retail Landscape Braces for More Closures
JCPenney’s decision comes amid a broader wave of retail downsizing in the U.S. In 2024, more than 7,300 store closures were recorded—marking the highest level since 2020. Industry analysts at Coresight Research project that number could rise dramatically to around 15,000 closures in 2025.
Other major retailers have also scaled back operations. Big Lots, for example, recently announced the closure of 315 locations after reporting a 10% drop in sales, equaling approximately $205 million in lost revenue. Meanwhile, Party City shuttered all its U.S. stores in December 2024 after four decades of operation, abruptly ending employment for thousands of workers without severance pay or extended benefits.
The retail industry is expected to undergo further transformation in 2025, with consumer preferences shifting, digital competition growing, and companies reevaluating the role of physical storefronts in their long-term strategies.
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