Walk into a J.C. Penney today and you’ll likely feel one of two things: a wave of nostalgia for the school clothes you bought there in 1998, or a slight sense of confusion about whether the store is actually open.
It’s been a rough decade for the Plano-based retailer. Honestly, "rough" might be an understatement. Since the company filed for Chapter 11 bankruptcy in 2020, the headlines have been dominated by a slow, agonizing drip of shuttered doors. We’ve seen the store count plummet from over 850 locations down to roughly 650. But if you’re looking for a simple "everything is closing" narrative, you won’t find it here. The reality of J.C. Penney closing stores is way more nuanced than just another retail apocalypse story.
📖 Related: Lowe's 4th of July Sale 2025: What Most People Get Wrong
The 2025-2026 Reality Check
So, who is actually getting the axe lately? In early 2025, the company confirmed another round of "isolated" closures. We aren't talking about a massive, 200-store sweep like we saw during the bankruptcy peak. It’s more surgical now.
By mid-2025, several key locations were officially on the chopping block. If you live near these spots, you probably already saw the "Store Closing" banners:
- The Shops at Tanforan in San Bruno, California.
- West Ridge Mall in Topeka, Kansas.
- Asheville Mall in North Carolina.
- Pine Ridge Mall in Pocatello, Idaho.
- The Shops at Northfield in Denver, Colorado.
There’s also the big one in San Diego. The J.C. Penney at Fashion Valley is closing to make way for—get this—850 luxury residences. It’s a perfect metaphor for the modern mall: out with the racks of Arizona jeans, in with the high-end condos.
Why Do They Keep Closing?
It’s easy to blame Amazon. Everyone does. But J.C. Penney’s wounds were often self-inflicted. You can’t talk about the store's decline without mentioning the Ron Johnson era in 2011. He tried to turn the store into a "mini-Apple Store" by killing coupons and sales. It was a disaster. Customers who loved the thrill of the hunt—finding that 40% off sticker—felt betrayed. They left and never really came back.
Today, the reason for J.C. Penney closing stores usually boils down to the "mall death spiral." Most of these locations are anchors in B and C-tier malls. When the foot traffic in the mall dies, the anchor dies with it. It doesn’t matter how many Martha Stewart towels you have in stock if nobody is walking past the front window.
Interestingly, there was a massive scare recently involving a $947 million real estate deal. A private equity firm, Onyx Partners, was supposed to buy 119 J.C. Penney properties from the trust that owns them. The deal fell through in late December 2025. For a second, people panicked. They thought those 119 stores were doomed. But Catalyst Brands (the new parent company) stepped in to clarify: the stores are staying open. The deal was just a landlord swap that didn't happen.
A Pivot or a Prayer?
Despite the closures, the company is dumping $1 billion into a "Make It Count" revitalization plan. They’re betting big on "working families." Instead of trying to be Nordstrom, they’re leaning into what they do best: affordable home goods and inclusive fashion.
Have you seen the new celebrity tie-ups? They’ve got:
- Shaquille O'Neal for big and tall menswear.
- Ashley Graham for plus-size collections.
- Jenny Martinez for a massive Mexico-inspired home line that just expanded in early 2026.
They even brought back the old logo. You know, the classic one. It’s a move to reclaim that "trusted department store" vibe. They’re finding a weird kind of success in beauty and jewelry, even while total sales numbers are still sliding a bit. In the third quarter of 2025, they actually saw a 20% jump in loyalty customers. People are still shopping there; there are just fewer places to do it.
✨ Don't miss: Chick-fil-A Political Donations: What Most People Get Wrong
What Most People Get Wrong
The biggest misconception is that J.C. Penney is "going out of business" tomorrow. It's not. Since being bought out of bankruptcy by mall owners Simon Property Group and Brookfield, the incentive has actually been to keep the stores open. If Penney closes, the mall loses its anchor, and the landlords lose their leverage.
It’s a symbiotic relationship—or maybe a survival pact.
The strategy now isn't growth; it's stabilization. They are cutting the dead weight (the underperforming mall stores) so the healthy ones have a chance to breathe.
Actionable Insights for Shoppers and Local Employees
If your local store is on the list, or you're worried it might be, here is what you actually need to know:
- The Liquidation Cycle: Once a closure is announced, sales usually run for 8 to 12 weeks. Don't expect 90% off on day one. The real deals (and the picked-over shelves) happen in the final 14 days.
- Gift Cards and Returns: J.C. Penney is still a national entity. If your local store closes, your gift cards and rewards are still valid at any other location or on JCP.com.
- Employment Rights: Employees at closing locations are often offered positions at nearby stores, though this depends on the local market's health.
- Check the Landlord: If your local mall is seeing a lot of vacancies (Gap, Macy's, or Express leaving), your J.C. Penney is at higher risk. The store’s fate is tied to the building’s owner more than the brand’s CEO right now.
The era of a J.C. Penney in every town is over. We’re watching the brand shrink into a leaner, more digital-focused version of itself. Whether that’s enough to survive the next five years is anyone's guess, but for now, the "everything must go" signs aren't quite ready for the national stage.