Going out of business sales set to begin at closing J.C. Penney stores. Will your store close?

Kelly Tyko and Nathan Bomey, USA TODAY,USA TODAY•   Loyal customers reflect after J.C. Penney filed for bankruptcy and closing after 118 years

J.C. Penney on Thursday received bankruptcy court approval to begin liquidation sales at stores that are closing permanently.

The department store chain, which is expected to close 242 stores for good, also won rent relief as it tries to avoid liquidation. The company won’t have to pay rent for June or July until July 13 for the roughly 600 stores it’s not permanently closing, Judge David Jones ruled.

The company had requested rent relief for all of its locations, but the judge limited the deferred rent payments to stores that expect to continue operations.

Liquidation sales could begin as soon as this weekend at the initial 154 J.C. Penney stores that will permanently close. (Scroll down to see the list.)

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The Texas-based chain is the largest company to file for Chapter 11 bankruptcy protection so far during the coronavirus pandemic.

The going-out-of-business sales are expected to last 10 to 16 weeks.

Florida, Ohio and Indiana each have nine closures, California has eight, and New York, Texas and Georgia have seven closings apiece.

The company is hoping to shed debt and split into two entities: an operating business and a real estate investment trust. If that plan doesn’t work, the company may agree to sell itself. Although the retailer hopes to stay in business, liquidation of the entire chain remains a possibility.

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Liquidation sales have changed: Going-out-of-business sales different because of COVID-19

J.C. Penney attorneys told Judge Jones on Thursday that they face a crucial deadline of July 15 to deliver a business plan supported by key lenders. Without one, the company is expected to pursue a sale instead. Such a sale could lead to a total liquidation if no suitors emerge who are willing to continue operating the business.Story continues

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