ALAMOSA — Alamosa will lose one of its most stable downtown businesses on July 5.
JCPenney, which has been in business for more than 100 years in downtown Alamosa, will close its doors on July 5, according to an official company statement.
“As part of a standard annual review, JCPenney can confirm that it will be closing its store located in Alamosa, Colorado with an effective closing date of July 5,” the company stated in response to inquiries. “This decision is the result of an ongoing review of our store portfolio, which includes assessing locations that may not meet our required financial targets or represent an opportunity to capitalize on a beneficial real estate asset.”
The company statement added that eligible associates who do not transfer to another JCPenney location would receive separation benefits, and all impacted associates would have the opportunity to participate in an on-site career training class to give them tips on resume writing, answering interview questions and finding other employment.
The Alamosa store employs 27 associates.
“It’s never easy taking actions that directly impact our valued associates and customers; however we feel this is a necessary business decision,” the company stated.
The company determined it would close 18 full-line stores in 2019, plus nine ancillary home and furniture stores “enabling capital resources to be reallocated to locations and initiatives that offer the greatest long-term value potential,” JCPenney stated in a press release. “The stores identified for closure either require significant capital, are minimally cash flow positive today relative to the company’s overall consolidated average or represent a real estate monetization opportunity. “Comparable sales performance for the closing stores was significantly below the remaining store base and these stores operate at a much higher expense rate given the lack of productivity.”
During the first half of 2019, the company expects to record an estimated pre-tax charge of approximately $15 million, primarily relating to non-cash asset impairments and transition costs, in connection with this action. Nearly all impacted stores are expected to close in the second quarter of 2019.
Local officials and residents are reaching out to the company to try to retain the store in Alamosa. For example, residents may sign a petition at the Green Spot on State Avenue.