JCPenney Closing All Outlet Stores
JCPenney, JC's 5 Star Outlet
After more than 50 years in business, JC's 5 Star Outlet/JCPenney Outlet announced the wind down of operations and the closing of all 15 Outlet stores in 14 states. "Going Out of Business" or "Total Inventory Blowout" sales will start Wednesday in each Outlet store, offering consumers $70 million worth of quality name brand and Private label products at significant discounts from the already low outlet prices of 25 percent to 75 percent off comparative retail.
The Outlet stores trace their roots to the JCPenney Company's 1962 purchase of a Milwaukee, Wis.,mail order company, the General Merchandise Company. JCPenney realized the need for a process to sell overstocked and discontinued merchandise from its catalog and mail order operations, and in 1963 opened its first new Outlet store in Wauwatosa, Wis. This original store, selling overstocked and discontinued merchandise, was advertised as "Penney's Catalog Warehouse Outlet, an all-new, revolutionary type of Penney store."
The Outlet stores, which had been designated for closure by JCPenney, were acquired by SB Acquisitions in October 2011.
Glen Gammons, the former head of the JCPenney Outlet Store Division, and CEO of JC's 5 Star Outlet, said closing the Outlet stores was a painful decision.
"The closing of the Outlets was necessitated by the precipitous decline of sales," Gammons said. "After exploring all the alternatives, we could no longer incur the losses resulting from the continued operation of the Outlet stores."