JC Penney 'Valentine's Day Massacre' coming?
Insiders are reportedly worried about rumors that the retailer's CEO will lay off hundreds at the corporate offices this month.
There are rumors that CEO Ron Johnson may lay off at least 10% of the 3,000 employees working at the company's headquarters in Plano, Texas.
Johnson may have been itching to do this for a while but may have wanted to wait until the company's new fiscal year began, the Post reports. That's because laying people off costs money -- in severance pay, for example -- and Johnson didn't want to load up the previous fiscal year with even more expenses.
Sources tell the newspaper the company is running low on cash. And its third-quarter earnings report confirms it, showing that at the end of October J.C. Penney had $525 million in cash -- down from $1.1 billion a year earlier.
Johnson was asked about the rumors Wednesday on CNBC and didn't give a definitive answer. Here's what he said, according to The Dallas Morning News:
"No, no. There are a lot of rumors. We have a rumor a day, it seems like. Today it's about layoffs at our headquarters. I would never talk about that, but you've got to separate the facts from the rumors. Ultimately, we need to have the right cost structure for the business and we have to grow. And we're going to be sure we do those two things."Johnson has been busy bringing in outside brands to stores, including Martha Stewart and Joe Fresh. Something has to give when you're making that kind of pricey investment, and the Post reports that the ax will likely fall on the designers and other employees who develop Penney's private-label brands.
Already, the Post reports, private brands like St. John's Bay and Arizona are starting to disappear from stores.
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The St. Johns Bay brand was the reason I shopped at JCP. FIRE the STUPID ceo and bring back St. Johns Bay brand.
I used to LOVE JCP, but recently their products do not have the same quality as before, and big and tall sizes are difficult to find. I have been really disappointed by Penny's.
he is a very awkward size, very long legs and the waist of a toddler ( considering he's 7)
Arizona jeans were always our favorites, general wear well, reasonably priced and they FIT him...
now what is a mother suppose to dress her son in?
J.C.P get real you were the store for the moderate family.. Get back to it, we will come back, we need you
I was looking for St John's bay the other day - loved their shirts - reasonable quality and MUCH cheaper than Tommy Bahama's - nothing similar in the stores - guess i will be heading to Kohls.
Ron may be the only persaon left there to turn out the lights - they missed their chance right before Christmas to admit their mistake and pick up on the Christmas season sales - Spring time is already here and back-to-school is too far away - the stores will be empty by then as the mfg's start to rethink their committment because Ron can't guaranty enough traffic in the stores to justify the expense to the mfg of paying for their portion of the store-within-a-store. Prices aren't competitive and no one is there to make that impluse buy when they are "sale" shopping. I still contend the only positive thing to come out of this will be a business school case study of how not to run a major box retailer. Ron doesn' really care other than his pride - he's got his $50MM now and that will go a long way to supplement his unemployment - Ackman controls the strings and as long he is stupid enough to buy into Ron's BS and he can short sell and still have his investment covered he doesn't give a rats **** what happens - wait another 2 weeks when the earnings report comes out LATE - not enough cash on the balance sheet to keep funding the transistion and not enough cash flow - creditors are tightening the reins - will be hard to get merchandise when mfg think you might file - tick tock tick tock
The members of the Board at JCP have plundered the assests for their own gain. They are, and have been over compensated for decades. No wonder on one wants the stock. The money goes into the pockets of the Board members and the Board members appoint Manaagement to ensure the process goes on and on and on and on.
The JCP brand doesn't represent families anymore. It's all about catering to every group except working families with kids in school. I find more value at the local thrift store.
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[BRIEFING.COM] The stock market finished an upbeat week on a mixed note. The S&P 500 added just over a point, holding its weekly gain at 1.0% while the Nasdaq lost 0.4%.
The major averages began the day on an upbeat note, but relinquished their opening gains during the first 90 minutes of action. The early sentiment was boosted by a better-than-expected nonfarm payrolls report for February (175K versus Briefing.com consensus 163K), but a closer look into the report suggested that ... More
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The solid report comes a month after the retailer closed all of its Canadian operations.
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