JCPenney decides to furlough majority of corporate staff and store associates

J. C. Penney Company, Inc. has announced extension of the temporary closure of its stores and business offices due to the coronavirus pandemic. As a result of its store closures, the company said in a statement, it has decided to temporarily furlough the majority of store hourly associates, beginning April 2. The company added that during this time, it will also require a smaller corporate workforce, so beginning April 5, 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 centers were previously furloughed on March 20, and those furloughs will continue.

“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,” said Jill Soltau, Chief Executive Officer of JCPenney.

The company further said that JCPenney has taken several actions to improve its cash position and financial flexibility during the pandemic, including deferring capital spend, utilizing 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.

Picture:JCPenney media centre