J.C. Penney to permanently close about 242 stores as part of bankruptcy plan

Stores staying open accounted for 82% of the company's fiscal 2019 sales

Get all the latest news on coronavirus and more delivered daily to your inbox. Sign up here.

(Reuters) - J.C. Penney Co Inc plans to trim its store count by 29% to about 604, as the U.S. department store chain looks to focus on those more profitable, a regulatory filing showed on Monday, two days after it filed for bankruptcy protection.

The stores to stay open accounted for 82% of the company's fiscal 2019 sales, J.C. Penney said. Reuters on Friday reported that the company was planning to shutter roughly 200 stores.

Ticker Security Last Change Change %
JCP NO DATA AVAILABLE - - -

J.C. Penney, which is looking to cut costs to remain afloat, plans to reorganize and emerge from bankruptcy proceedings after eliminating several billion dollars of debt. It will also explore a sale as part of the terms of its $900 million of debtor-in-possession financing.

BANKRUPTCY COURT MAKES BIG DECISION AFFECTING J.C. PENNEY STAFF

Meanwhile, the company is doubling down on its e-commerce presence as consumers are increasingly shopping online and hopes to record double-digit growth in its flagship online channel by fiscal 2021.

A customer pushes a shopping cart inside a J.C. Penney Co. store in Peoria, Illinois, May 12, 2018. (Photographer: Daniel Acker/Bloomberg via Getty Images)

The company operates about 850 stores in the United States and Puerto Rico, according to its website.

GET FOX BUSINESS ON THE GO BY CLICKING HERE

(Reporting by Praveen Paramasivam in Bengaluru; Editing by Shinjini Ganguli)

CLICK HERE TO READ MORE ON FOX BUSINESS