PLANO, Texas — Editor's note: The above video explains how the stimulus bill will impact people who have recently lost their job.
J.C. Penney Co. Inc. will furlough the majority of its store hourly associates and extend the temporary closure of its stores and business offices due to COVID-19 pandemic.
The Plano-based retailer has nearly 90,000 employees and will start temporarily furloughing its hourly associates beginning April 2, according to a news release from JCPenney.
It will also furlough a “significant portion” of associates in the company’s home office, Salt Lake City and Soho design offices, along with store salaried associates, beginning April 5. The company said "many" of its associates in supply chain and logistics centers were furloughed on March 20 and that "those furloughs will continue,” the release said.
The furloughed associates that are enrolled in the company’s benefits program will continue to receive health benefits, and the company will cover employee-paid premiums for the duration of the furlough.
In the release, JCPenney noted that "it anticipates gradually reopening stores and offices in markets when it is safe to do so," though no specific date was stipulated.
“We remain optimistic about JCPenney’s ability to weather this pandemic. We also believe these short-term solutions will have a long-term benefit for our associates, customers, and key stakeholders as we look forward to the day that we reopen our doors,” the company’s Chief Executive Officer Jill Soltau said in a prepared statement.
The company has deferred capital spending, cut spending and paused hiring, among other measures as it looks to improve its cash position and financial flexibility amid the coronavirus pandemic. JCPenney (NYSE: JCP) has also extended the terms for goods and services payments and suspended 2020 merit increases.
JCPenney recently announced it was temporarily closing all stores and offices in response to the pandemic, though the company continues to fulfill online orders and its eCommerce distribution centers and customer care remain open.
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