coming into Manhattan meant a brand new course for the retailer. In 2009, the corporate opened its very first retailer in Manhattan, situated simply two blocks south of Herald Sq.. Its first 12 months was marked by celeb appearances and a large city-wide advertising and marketing marketing campaign. However 11 years later, JCPenney introduced final week that its Manhattan retailer was completely closed.
Affected by severe monetary difficulties, JCPenney filed for Chapter 11 chapter safety on Could 15. The mix of COVID-19 retailer closings and collected debt of $ 4 billion had confirmed unsustainable. Moreover, the corporate by no means absolutely recovered from its 2012 every day value fiasco.
Final Wednesday, JCPenney appeared in U.S. Corpus Christi chapter court docket and offered a binding restoration plan for the ailing retailer. The plan, not disclosed to the general public, was designed to persuade direct lenders of a practical future enterprise trajectory. Inside the framework of the Courtroom’s directive, lenders must now determine whether the retailer can operate as a permanent business or should be forced into liquidation.. These lenders will meet on Tuesday to decide, though JCPenney has requested an extension.
Final Tuesday night, the day earlier than the court docket look, JCPenney added the downtown Manhattan and King Plaza places in Brooklyn to the record of 149 ongoing retailer closings. Not like the Kings Plaza retailer, the JCPenney retailer in Manhattan won’t be holding a last clearance sale. The corporate says it has closed its doorways for good.
Dione Martin, director of communications for JCPenney, calls the Manhattan retailer closure “the following step in implementing its retailer optimization technique.” Martin says the choice was based mostly on “cautious evaluation of retailer efficiency and future strategic adjustment.”
The fence marks a tragic finish to a promising place. Though its headquarters had been in New York Metropolis from 1913 to 1988, JCPenney had by no means operated a retail retailer in Manhattan. Within the late 2000s, JCPenney executives wished to remodel the enterprise from a flexible division retailer to a contemporary retailer providing trend, confidence, type and worth. The retailer noticed Manhattan as a “type mecca” and coming into its market would create an thrilling ripple impact throughout the chain.
JCPenney wanted to face Macy’s
as its primary competitor. Previous to its preliminary opening, JCPenney covered the city with billboards, banners and subway indicators that learn: “NYC type at JCP costs”, “Our neighbors have to be shaking of their overpriced boots” and “We heard that Herald Sq. wanted of an excellent division retailer. ”
Situated within the Manhattan Mall on Sixth Avenue and West thirty second Road, JCPenney opened on July 31, 2009. Its month-long opening celebration featured celeb appearances from Cindy Crawford, Wolfgang Puck, Nicole Miller and the ‘Former Yankee Bernie Williams. The corporate’s head workplace referred to as its new Manhattan location “type of like our flagship product.”
However the retailer had a number of design flaws. There was no direct avenue stage entrance off Sixth Avenue. Buyers needed to enter the enclosed mall and take a sequence of escalators to achieve the underground division retailer. Its low eight-foot ceilings gave the shop the picture of an airport terminal slightly than a grand New York emporium.
In 2017, rumors had been circulating that JCPenney might abandon its 153,000 sq. foot retailer in Manhattan. Its annual lease was estimated at $ 100 per sq. foot.
Manhattan Mall was the previous residence of Gimbels’ flagship division retailer in New York Metropolis. After reaching success in Milwaukee and Philadelphia, Gimbels opened its New York location in 1910. The brand new retailer, designed by famend industrial architect Daniel Burnham, was situated simply two blocks south of Macy’s. For a number of many years, the 2 department shops maintained a pleasant rivalry and had been the topic of the movie Miracle on thirty fourth Road. Nonetheless, as retail developments modified and Macy’s modernized its constructing and up to date its merchandise, Gimbels stood nonetheless. Unable to discover a purchaser, Gimbels liquidated in 1986.
After a serious inside renovation and reconfiguration, the constructing grew to become the A&S Plaza in 1989. The vertical procuring middle included a Brooklyn-based Abraham & Straus division retailer, dozens of specialty shops, and industrial workplaces on its higher flooring. . Within the mid-Nineteen Nineties, A&S merged with Macy’s and the division retailer house grew to become Stern’s. A conventional retailer at a reasonable value, Stern lacked the drawing power that the Midtown Manhattan mall demanded. After Stern closed in 2001, the mall was downsized and skilled excessive emptiness charges. The choice to create a brand new JCPenney introduced hope to the struggling city mall.
JCPenney’s entry into the Manhattan market was meant to safe its future as a aggressive fashion-focused retailer. Eleven years later, the corporate’s future now is dependent upon its skill to chop spending and eradicate debt. The closure of the Manhattan retailer is now a part of the corporate’s future. However Tuesday’s subsequent chapter court docket look might decide whether or not that future stays attainable.