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JCPenney to Shut Texas Distribution Hub, Lay Off 300 Employees

Catalyst Brands will phase out the Alliance Supply Chain warehouse as part of a cost-cutting plan following its merger with SPARC Group

The JC Penny location at the Willowbrook Mall is seen, Saturday, Aug. 5, 2023, in Houston. The retailer is expected to close a distribution center warehouse in Tarrant County in North Texas, cutting nearly 300 jobs. 
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Overview

  • JCPenney notified the Texas Workforce Commission it will permanently close its Alliance Supply Chain warehouse in Tarrant County early November after two rounds of layoffs beginning August 1
  • Approximately 296 workers will be laid off in two phases—August 1–16 and November 1–14—with severance pay, benefits and potential transfers offered to affected employees
  • The closure aligns with Catalyst Brands’ broader restructuring following JCPenney’s merger with SPARC Group, which included corporate staff reductions of 5% in February and 9% in April
  • In 2024 JCPenney’s net sales fell 8.6% to $6.3 billion and the company recorded a $177 million loss, intensifying its push for operational consolidation
  • Chicago law firm Strauss Borrelli PLLC has indicated a possible class-action suit over alleged failure to provide the full 60-day WARN Act notice for upcoming layoffs