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 have been employed at JC Penney for the past twelve years and I can tell you that people are not pleased with the changes. Since discontinuing Cabin Creek, SJB, Towncraft. Gloria Vanderbuilt, and now Arizona, and sales altogether, the foot traffic in my store has dropped 85%. Once our store gets rid of Arizona, we might as well close the doors. I think that by the end of the year, JCP will file for chapter 7 or be bought out by another company. I lean towards the latter happening.
What happen to the jcp plain pocket jeans they were 9.99.
That was a long time ago and that's all I used to wear.
They fit good and last a long time. The jeans today are thin
don't last as long for 40.00 to 60.00 $.
When Ingersoll Rand bought out the compnay I worked many years for one of the first things they did was have a luncheon. They have a history of liquidating companies so after the purchase we were all a little worried for our jobs. At the luncheon the CEO and others reassured us that they bought us to grow us not close us down. 2 Weeks later 120 in the office were let go. They called them in and fired them and escorted them out the door. They couldn't even go get personal belongings. The luncheon became kn ow as "The last Supper ". It took the 15 years to finally close the place that had been a mainstay in this little town for 70 years but IR held true to thier mission of profiting through liquidation rather than production. The product line they kept is made in China and India.
the new age of corporate management can't seem to figure out how to make a business run any more. JCP, Kmart and many others simply don't aks the customer what they need and even when they do they seem to ignore them and poof they are gone.
That sale pricing JCP did failed to draw me and prices never seemed like real bargains. I think the store needs a whole new approach of some kind in order to survive. They upscaled with Sephora and those prices are unreal in this economy. No woman is going to look that much better buying her cosmetics there instead of just Walmart. I think except for Kohl's that smaller, more affordable stores like Old Navy are doing better. Maybe JCP could downsize and go tthat way?
I agree with most of the other comments, that jc penney, to me is no longer the old jc penney I knew! I am very limited on everything I want to buy, no variety of sizes for different department's, and not much selection in what they do offer! It's no longer my favorite store!
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