JCPenney announced plans to permanently shut down its Alliance Supply Chain facility in Haslet, Texas, resulting in almost 300 layoffs scheduled in two phases between August and November 2025.
This closure marks a significant operational shift for the retailer and indicates larger issues beyond simply closing a warehouse.
The move is positioned as a necessary step to build a stronger, more competitive company amid ongoing financial struggles.
Financial Struggles and Strategic Restructuring
The closing is a result of JCPenney’s decline in sales and profitability. In 2024, the company suffered an 8.6% decline in net sales, to $6.3 billion, and a net loss of$177 million, compared to a profit of $30 million the previous year.
Consolidated adjusted EBITDA dropped by over 45%. These economic constraints, the impact of inflation and reduced foot trtaffic, have forced the company to rethink its operations and supply chain strategy.
Impact on Haslet Employees and Community
The first immediate ripple effect is felt by the roughly 300 employees at the Haslet warehouse, who will suffer job losses in two phases.
The local community around Fort Worth now braces for the economic challenges as families cope with the sweeping job cuts. Some associates may be offered positions at other JCPenney locations, but the uncertainty remains high for many workers.
Operational Changes and Supply Chain Consolidation
Closing the 1.1 million square foot facility is part of JCPenney’s broader operational and consilidation effort to streamline its operations. The company is looking at improving customer experience by efficient logistics and minimal costs.
This change is an effort by the company to better position itself in an increasingly transforming retail landscape and improve competitiveness against e-commerce giants and other retailers.
Corporate Restructuring and Job Cuts
The warehouse closure comes on the heels of previous corporate staff reductions, with JCPenney’s joint venture Catalyst Brands cutting 5% to 9% of corporate roles in early 2025.
The restructuring is part of a broader effort to integrate JCPenney with Sparc Group’s portfolio, which includes brands including Brooks Brothers and Eddie Bauer, aiming to create operational efficiencies and a unified retail strategy.
Store Closures and Market Adjustments
JCPenney has closed eight stores across the country since Catalyst Brands was formed in January 2025, though none in Texas.
These closures indicate a sustained effort to shed underperforming locations and adjust to market changes, reflecting ongoing challenges in maintaining foot traffic and relevance in the competitive retail landscape.
Broader Retail Industry Impacts
JCPenney’s challenges reflect larger retail industry trends where iconic brands face declining sales, increased competition from e-commerce and rising costs.
The Haslet logistics center is a part of the Fort Worth industrial corridor along with other significant distribution centers which may affect labour supply chain dynamics and employment in the region.
Legal and Regulatory Considerations
The timing of the layoffs might not be fully comply with the federally mandated 60-day notice period , opening the possibility of legal action.
A Chicago-based law firm has indicated a potential class-action suit on behalf of affected employees, highlighting the legal complexities companies face when executing large-scale layoffs.
Navigating Retail Changes
Consumers also may notice changes to product availability and store experience as JCPenney restructures. Shoppers are advised to stay informed about store closures and changes to inventory.
Exploring alternative retail options or online shopping might become necessary as JCPenney adapts its business model to remain competitive.
A Retail Giant’s Transformation Amid Challenges
What begins with the closure of a single warehouse ripples through employees, communities, corporate structures, and the broader retail ecosystem.
JCPenney’s efforts to streamline operations and merge with Catalyst Brands reflect the difficult balancing act legacy retailers face in reinventing themselves amid evolving consumer behaviors and economic pressures.