JCPenney Has Not Gone Out of Business

"JCPenney filed for bankruptcy in 2020. Unlike some other retailers, this was not the end of its road. The COVID-19 pandemic nearly killed the retailer, and it emerged from bankruptcy after closing 846 stores. As it got smaller, it laid off tens of thousands of employees. However, today, it still has 648 stores, mostly in the eastern half of the United States."

"Catalyst Brands now owns JCPenney. It is also the owner of once-troubled Aéropostale, Brooks Brothers, Eddie Bauer, Lucky Brand, and Nautica. Its shareholders include some of the largest mall owners, such as Brookfield. It is hard to say why JCPenney has survived. Probably in part due to brand recognition. Being a large tenant in some of the country's largest malls also helps. That likely gives it a chance against giant Walmart, which has over 46,000 stores in the United States."

"JCPenney may continue to survive because it is still a "something for everyone" store that offers deep discounts. Tariffs will put this business model to the test. In May, Walmart stated that tariffs would impact its business. CEO Doug McMillon briefly argued publicly with President Trump about whether consumers would ultimately bear the cost of these tariffs. What is important is that JCPenney faces either margin compression or a threat to its deep discount reputation."

Several long-established U.S. retailers from the late 19th and 20th centuries have largely disappeared, while JCPenney endured despite a 2020 bankruptcy. The company closed 846 stores, laid off many employees, and now operates 648 locations, primarily in the eastern United States. Catalyst Brands owns JCPenney and other once-troubled apparel names, with shareholders that include major mall owners such as Brookfield. Continued survival likely stems from brand recognition, anchor tenancy in large malls, and a broad discount merchandise strategy. Emerging tariffs pose a material risk to margins and to the chain's deep-discount positioning.

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