JCPenney to shutter 40 stores

JCPenney (NYSE:JCP) will close 40 stores in the next year, 4 percent of its 1,060 locations. The company will also cut about 2,250 jobs as it tries to raise profits.

Most of the stores will close by April 4, reported the Associated Press.

The announcement comes just two days after the company reported a 3.7 percent increase in same-store sales during the holiday season, stretching from November through December. The company predicted that its fourth-quarter comparable sales will in turn be at the top range of its forecast of a 2 to 4 percent gain.

However, it seems the optimism was not enough as the company tries to recover from a plan to reinvent itself under former CEO Ron Johnson. Johnson's struggles are well documented, and despite the progress made since Mike Ullman's return as CEO, it looks like the retailer isn't out of the woods just yet.

Ullman was rehired in April 2013 after retiring in 2011, and will be replaced by Marvin Ellison in August.

For more:
-See this Associated Press article

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