J.C. Penney to cut 6,000 workers, move Buena Park distribution center to Inland Empire, close up to 140 stores

J.C.Penney’s will shutter a massive distribution facility in Buena Park and relocate the center to the Inland Empire, the company said Friday, along with news it would close up to 140 stores nationwide.

In a press release, the company stated it was “in the process of selling its supply chain facility in Buena Park in an effort to monetize a lucrative real estate asset.”

No details were provided regarding the number of employees who would be impacted by the looming closure.

The 1-million-square-foot, 24-acre compound at 6031 Orangethorpe Ave., was assessed at roughly $35 million last year, making it a valuable real estate asset for the troubled retailer. CoStar, a commercial real estate database, indicates the property is used as a “hub for J.C. Penney’s West Coast operations.”

“The driver here is selling industrial facilities in Southern California,” said Louis Tomaselli, a senior managing director at JLL. “They could sell this million-square foot DC (distribution center) that is 40 years old and pretty antiquated and sell it for over $130 million.”

Tomaselli echoed what is apparently happening with J.C.Penney’s planned move to the Inland Empire.

“They go sell a 40-year-old facility and then they lease a brand new facility … a brand new, state-of-the-art facility, a huge truck court. And they pay current market rates, which are well below what it would cost to operate the Orange County facility at the price level it was worth….

Read the full article at foxnews.com…

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