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Archive for Saturday, January 11, 2003

J.C. Penney to close facility in Lenexa

January 11, 2003

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— J.C. Penney Co. said Friday that it would cut about 2,000 jobs and close three facilities related to its catalog business.

The company said it planned to close a catalog-fulfillment center in Atlanta and telemarketing centers in Atlanta and Lenexa, Kan., by the end of the second quarter.

The moves come amid a restructuring of the catalog business that the company expects to save about $30 million a year beginning in 2004.

December's sales for the catalog division were down 23.7 percent compared with the previous year. At the same time, the firm's department stores reported better-than-expected sales, up 4.7 percent at those stores open at least a year.

J.C. Penney also operates about 1,060 department stores and 2,600 Eckerd drug stores. It had about 250,000 employees in late October.

In trading Friday on the New York Stock Exchange, Penney shares fell 98 cents, or 4 percent, to $23.60.

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