JCPenney spent a decade trying to survive the internet — then COVID finished it

JCPenney was founded in 1902 and grew into one of America's largest department store chains, operating roughly 850 stores with nearly 90,000 employees at its peak. By the 2010s, the chain was in steady decline as mall traffic fell and internet retail rose. A disastrous 2012 turnaround attempt by ex-Apple executive Ron Johnson — who eliminated coupons and promotions for everyday low pricing — accelerated the fall, and the company struggled to recover.

The COVID-19 pandemic delivered the final blow. JCPenney closed all stores on March 15, 2020, furloughing most employees. With rent due and no revenue coming in at 850 locations, the company ran out of time. It filed for Chapter 11 bankruptcy on May 15, 2020, listing $4.2 billion in debt. The filing was one of the largest retail bankruptcies of the pandemic era, alongside Neiman Marcus and J.Crew.

JCPenney emerged from bankruptcy in December 2020 under the ownership of mall operators Simon Property Group and Brookfield Asset Management, which purchased the chain for roughly $800 million. About 175 stores were closed and nearly 60,000 jobs were preserved. The company survived, but as a fraction of its former self — a department-store chain operating in a retail landscape that had passed it by.