It’s becoming an all-too-familiar story across the American retail landscape—big-name brands pulling back, shuttering stores, and laying off workers. This time, it’s JCPenney once again making headlines, as nearly 300 employees are set to lose their jobs with the closure of a major distribution hub in Texas.
The company confirmed it will permanently close its Alliance Supply Chain facility later this year, marking another chapter in its long battle to stay afloat after years of financial turbulence.
Hundreds to Lose Jobs as Warehouse Closure Begins in August
The closure will unfold in two phases. The first round of layoffs will begin August 1 and run through August 14. A second wave is planned for November 1 through November 14. After that, the Alliance Regional Logistics Center will officially close its doors.
In a statement to DailyMail.com, JCPenney said, “We’re constantly looking for ways to evolve and improve how we operate in order to better serve our customers. After a thorough review, we’ve made the difficult decision to close this facility.”
Affected workers have already been notified and are being offered severance packages, continued benefits, and support for transitioning to new employment.
Another Blow Follows Recent Wave of Store Closures
This warehouse shutdown comes just one month after JCPenney closed seven retail stores in several states—including California, Colorado, Idaho, Kansas, New Hampshire, North Carolina, and West Virginia.
Although the chain still has around 650 stores in operation, its footprint has shrunk dramatically in the past few years as it struggles to reinvent itself after filing for bankruptcy in 2020.
Bankruptcy, Store Closures, and a Long Road to Recovery
JCPenney’s financial problems didn’t start overnight.
Signs of serious trouble began as early as 2011, and things only worsened during the COVID-19 pandemic.
In 2020, the company filed for bankruptcy, carrying a staggering $5 billion in debt.
That year, it also announced plans to close roughly 30 percent of its stores.
By the end of 2021, about 192 locations were gone.
Another 50 closed in 2022. The company says these moves are part of a long-term effort to become leaner and more competitive.
Despite Celebrity Collaborations, Sales Are Still Declining
In recent years, JCPenney has tried to boost its appeal with exclusive celebrity collections featuring Ally Brooke, Dwyane Wade, and Gabrielle Union.
While these lines have sparked some interest, they haven’t been enough to reverse the downward sales trend.
In 2024, the company ended the year with $6.3 billion in sales—an 8.6% drop from the year before.
The fourth quarter was particularly rough, with revenue falling over 9% to $2.09 billion, resulting in a net loss of $64 million.
JCPenney Isn’t Alone as Other Retail Giants Struggle Too
While JCPenney’s story stands out, it’s far from the only retailer cutting back.
Macy’s recently announced it’s closing 66 stores this year as part of a broader plan to shut down 150 by 2026.
Once those closures are complete, Macy’s will be left with just 350 stores.
Other big names are shrinking fast, too.
Torrid could shut down up to 180 stores due to plummeting sales.
And shoppers were stunned to see Saks leave San Francisco’s Union Square and Neiman Marcus exit downtown Dallas.
For some chains like Forever 21 and Hudson’s Bay, the financial toll has been too steep to recover from—resulting in full closures of certain locations.
A Retail Reckoning as Shoppers Wait and Watch
With legacy retailers like JCPenney, Macy’s, and others all cutting back, the future of mall culture and big department store chains feels more uncertain than ever.
For the employees at the Alliance facility in Texas, the countdown to layoffs has already begun—another tough blow in a retail world that’s still fighting to find its footing.
The question now: who’s next?