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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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.
The St. Johns Bay brand was the reason I shopped at JCP. FIRE the STUPID ceo and bring back St. Johns Bay brand.
There are a lot of reasons to give up on JCP, but gay dad isn't one of them.
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
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The company plans to close stores and lay off employees, and says it needs to make some deeper changes.
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