Struggling department store chain shares more bad news | Official Website of Louis Velazquez, entrepreneur, finance guy and tech innovator

The news keeps getting bleaker for retailers. Even the most iconic brands are struggling these days, shutting down underperforming stores and in some cases closing all doors forever.

Beloved brands like Macy’s and Nordstrom are not immune to the chaos, and neither are niche outlets like Lululemon and Foot Locker.

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Foot traffic to indoor malls has largely returned to pre-pandemic levels, but some stores just have not been able to regain the success they enjoyed for decades.

Plus, brands that are perceived as stale have a harder time reinventing, especially when they’re already on their heels.

That’s been the case for JCPenney, a company founded in 1902.

At its height, it operated more than 2,000 stores and had a mail-order catalog that was found in practically every household in the U.S.

But the company stopped publishing the catalog right around the time it started closing stores in 2010, and it now operates around 650 stores.

JCPenney filed for bankruptcy in 2020. It emerged from Chapter 11 that same year under new ownership, but it is still undertaking changes needed to sustain the business.

JCPenney emerged from bankruptcy in 2020 but is still struggling.

Image source&colon; Shutterstock

JCPenney will close a major logistics hub in Texas

Now, JCPenney has announced it will shut down a major fulfillment facility in Haslet, Texas. The location, officially called the JCPenney Alliance Regional Logistics Center, will cease operations in early November.

Around 300 employees are affected. According to a Worker Adjustment and Retraining Notification (WARN) filed with the Texas Workforce Commission earlier this month, the closure is scheduled for around November 1, with job cuts unfolding in two waves: August 1–14, followed by November 1–14.

JCPenney says workers will be offered severance pay, benefits, and potential relocation to other company sites.

JCPenney says the decision to close the Texas facility was a necessary step to “build a stronger, more competitive company” and enhance the shopping experience for customers.

The company also says the difficult move is part of a broader strategy aimed at operational consolidation and cost optimization.

The Texas logistics center closure occurs as JCPenney navigates a period of significant financial strain. The chain’s net sales fell sharply — by 8.6% in 2024, dropping to $6.3 billion — and the company swung to a net loss of $177 million, a dramatic reversal from a $30 million profit the previous year. Consolidated adjusted EBITDA also declined more than 45% to $172 million.

JCPenney layoffs have been constant in 2025

Earlier this year, JCPenney merged with SPARC Group, the company that manages legacy brands like Brooks Brothers and Eddie Bauer, to create Catalyst Brands.

As part of this integration, the company reduced its corporate staff by around 5% in February and then another 9% in April.

JCPenney has also closed dozens of stores since pandemic and is also attempting to rejuvenate the brand by partnering with brands like Sephora, Nike, and Adidas, hoping to drive more foot traffic to its mall anchor stores.

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Still, the company is losing ground to e-commerce giants like Amazon, Walmart, and Target. Rising rent and labor costs, coupled with uncertainty around tariffs and cautious consumer spending, are adding pressure to its legacy as a brick-and-mortar brand.

The initial wave of layoffs beginning August 1 may not comply with the federally mandated 60‑day notice period, triggering possible legal action.

A Chicago-based law firm, Strauss Borrelli PLLC, has indicated a class-action suit may be initiated on behalf of the affected employees.

The logistics center in Haslet is located near Fort Worth, within a bustling industrial corridor along Intermodal Parkway, home to major distribution hubs for companies like Michaels, SC Johnson, Kraft Heinz, Coca‑Cola, and Amazon.

Its loss will impact not only JCPenney’s supply chain, but the broader Fort Worth economy, where FedEx (FEDEX) will also close a major logistics center. The FedEx layoff affected more than 300 employees after a major client decided to take its business elsewhere.

Still, JCPenney insists the closure and layoffs are essential for strengthening its operations and ensuring its long-term viability.

“We appreciate the contributions of all affected associates…and are committed to supporting them with transition resources, including severance and benefits,” the company said in a statement to Retail Dive.