J.C. Penney entered bankruptcy in mid-May with 850 stores — way more than what some analysts thought the ailing department store retailer should be running amid a protracted decline in mall retail. When the retailer filed for Chapter 11, it said it planned to close up to 240 stores, and so far has eyed the closure of 150.
This shrinking is standard for a retailer in bankruptcy. After all, one of the advantages of the court process is being able to make quick exits from leases and stores that have become unprofitable or are on a downward trajectory. And with Penney’s sales on the downward slope for years, it has little choice but to get smaller in proportion to its dwindling customer base.
