J.C. Penney announced that it will close 130 to 140 stores. That represents about 13% to 14% of their total stores. It is a big step for a company that had to pledge inventories to secure a loan a couple of years ago.
It is vital to close unproductive stores, and essential for this company to regain sales and earnings momentum. The recent satisfactory earnings results must have convinced management that it was the right time, financially and strategically, to close some stores.