JC Penney says closure of about 40 of its stores to cost about $38 million

Associated Press

JC Penney Co. says the closure of about 40 of its stores will cost around $38 million.

The department store chain said it will book pre-tax charges of $21 million in the fourth quarter of its fiscal 2014, and another $17 million will be incurred later.

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The company will cut about 2,250 jobs as it tries to improve its profitability. Earlier this week it started notifying workers at stores slated to be closed.

Penney expects to complete most the store closures by April. A year ago, it announced plans to close 33 stores and cut about 2,000 jobs.

The company, based in Plano, Texas, has about 1,060 stores. It has been trying to recover from a botched plan to reinvent itself under former CEO Ron Johnson.