J.C. Penney is preparing to shutter a major logistics facility in Haslet, Texas and lay off nearly 300 workers, as its parent company Catalyst Brands confronts mounting pressure from declining revenues and persistent operational challenges.
The closure is set to take place in two waves between August and November this year.
The department store chain, a long-standing American retail since 1902, plans to recover from this sharp turn. In 2024, J.C. Penney reported an 8.6% drop in net sales to $6.3bn, excluding credit card revenue, and swung to a $177m net loss — a stark contrast to the $30m profit recorded the year prior. EBITDA also fell by more than 45% to $172m.
The layoffs mark the latest setback for Catalyst Brands, a venture formed earlier this year in January, following the merger of J.C. Penney and Sparc Group; housing brands such as Brooks Brothers and Eddie Bauer.
The new entity has an access of over 60 million customers in three years, supported by a wide-reaching distribution network of stores, digital platforms and wholesale channels.
While some affected employees may be offered roles at other J.C. Penney locations, the Haslet closure adds to more than 200 store shutdowns in recent years — a reminder of the brand’s long struggle to regain its footing in the post-pandemic retail landscape.
J.C. Penney was acquired after bankruptcy was filed, in 2020 by Simon Property Group and Brookfield Asset Management for a reported $800m.
Despite investment in modernisation, including a controversial overhaul under former Apple executive Ron Johnson in the early 2010s, the retailer continues to grapple with weak footfall and intensifying pressure from discount and online competitors.
Retail Dive first reported the warehouse closure and concerns about Catalyst’s ability to achieve the brand synergy and growth originally envisioned at the start of the year.
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