J.C. Penney in Alamogordo to close as company files for Chapter 11 bankruptcy
Jessica Onsurez
J.C. Penney announced its location inside White Sands Mall in Alamogordo would be one of 154 stores closed as the company tackles Chapter 11 bankruptcy.
"Following a comprehensive review of our retail footprint, JCPenney made the difficult decision to close 154 stores. We will continue to operate the majority of our stores and our flagship store, jcp.com, to ensure our valued customers continue to have access to the products and brands they need and want," the company's website said.
The White Sands Mall location was the only property in New Mexico slotted for closure. There are also stores located in Albuquerque, Clovis, Farmington, Gallup, Hobbs, Roswell, Santa Fe and Las Cruces.
Management at the Alamogordo location could not be reached for comment. The number persons employed at that location was not released by the company.
The New Mexico stores were forced to close to customers temporarily amid restrictions placed on retailers by the New Mexico Department of Health and the office of Gov. Michelle Lujan Grisham to prevent the spread of COVID-19.
State emergency health orders closed retailers for over two months; the governor announced retailers would be allowed to reopen beginning June 1 with limitations on occupancy as the state continued to grapple with the coronavirus pandemic.
J.C. Penney owns and operates over 800 stores selling apparel and home decor nationwide, the company's website stated.
“While closing stores is always an extremely difficult decision, our store optimization strategy is vital to ensuring we emerge from both Chapter 11 and the COVID-19 pandemic as a stronger retailer with greater financial flexibility to allow us to continue serving our loyal customers for decades to come,” J.C. Penney CEO Jill Soltau said in a statement.
MORE:J.C. Penney announces new home brand while planning for store closings in bankruptcy
In fiscal year 2019 the company reported net sales of $10.7 billion. USA Today reported May 15, that the company struggled with $4.2 billion in debt leading to talks of filing for bankruptcy protection.
The department store previously announced it would close over 200 stores, in part of what has become a bankruptcy trend among national retailers.
Stage Stores Inc. announced it would close several retail locations - the company owns and operates Bealls along with other chain department stores such as Goody’s and Palais Royale - in New Mexico. Houston-based Stage Stores filed for bankruptcy in May, reporting about $1.71 billion in assets and about $1.01 billion in debts.
The two companies join Neiman Marcus, Gold's Gym and Hertz which have all reported bankruptcy filings since the beginning of the coronavis pandemic.
Jessica Onsurez can be reached at jonsurez@currentargus.com, @JussGREAT on Twitter at by phone at 575-628-5531. USA Today reporting contributed to this article.