Brandon Tester | Daily Journal
                                The J.C. Penney store in Rockingham Plaza is one of the 154 locations the company is closing permanently as a part of its post-bankruptcy optimization plan.

Brandon Tester | Daily Journal

The J.C. Penney store in Rockingham Plaza is one of the 154 locations the company is closing permanently as a part of its post-bankruptcy optimization plan.

ROCKINGHAM — J.C. Penney in Richmond Plaza is one of the company’s 154 locations that will close permanently as a part of the department store chain’s post-bankruptcy optimization plan.

“While closing stores is always an extremely difficult decision, our store optimization strategy is vital to ensuring we emerge from both Chapter 11 and the COVID-19 pandemic as a stronger retailer with greater financial flexibility to allow us to continue serving our loyal customers for decades to come,” Jill Soltau, chief executive officer of J.C. Penney, said in a news release. “I am incredibly grateful to our talented associates for their ongoing dedication and their passion for meeting and exceeding our customers’ expectations during this difficult and uncertain time. All impacted associates will be treated with the utmost consideration and respect.”

Neil Robinette, CEO of Richmond Plaza owner C.F. Smith Property Group, said the news of the closure was “disappointing,” but not unexpected given J.C. Penney’s financial troubles over the past decade.

“Frankly, it’s been somewhat of a cloud of uncertainty over landlords with a J.C. Penney in the lineup for the past several years,” Robinette said.

C.F. Smith had a “strong indication” the Rockingham store would close when J.C. Penney filed for bankruptcy in May.

“The timing is the most unfortunate thing given the current economic climate,” Robinette said.

In addition to the closure in Rockingham, J.C. Penney is also closing locations in Lumberton, Raleigh, New Bern and Henderson.

Closing sales for the affected J.C. Penney stores will begin on June 12. Per the release, J.C. Penney expects that closing sales for its first wave of closures will take between 10 and 16 weeks to complete.

C.F. Smith now needs to fill the space left by J.C. Penney — an especially difficulty task in an economy that is suffering through the COVID-19 crisis.

“The COVID-19 crisis has shaken the commercial real estate world collectively and I would be lying to say this is not an extremely challenging environment for leasing – especially large box retail space in small markets,” Robinette said. “Almost all retailers put growth on at least a temporary pause and a lot are rethinking their real estate and growth strategies.

“It literally went from one of the most active leasing environments to a near standstill in a matter of days this spring,” he continued.

The building currently occupied by J.C. Penney is one of the Plaza’s largest spaces. The building has been occupied by the same tenant since it was built in the 1960s. Robinette said it will be a “great and sustainable location for the right user,” and C.F. Smith is currently looking for a new tenant.

Richmond Plaza includes space for approximately 30 businesses. With J.C. Penney gone, the list of major stores in the Plaza includes Belk, Roses, Save a Lot, Firestone and Verizon, as well as several other retailers. Aspen Dental, Firehouse Subs and Planet Fitness locations are all under construction in the Plaza.

Widespread impact

All tenants of Richmond Plaza — both national chains and smaller businesses — are feeling the strain of restrictions stemming from the pandemic. Some of them were deemed unessential, and thus were required to remain closed for almost two months when Gov. Roy Cooper first initiated the state’s stay-at-home order. All of the tenants are dealing with capacity restrictions and strict sanitation requirements as the state’s economy continues to reopen.

Local businesses on the property have had to get creative in order to survive the crisis.

“These local tenants have taken incredible risk to start and grow a business but do not have the balance sheets to withstand such a shock,” Robinette said. “We’ve seen creative ways to interact with customers and get product to them via social media, call in orders, delivery, etc. and that’s been exciting to see.”

The Plaza’s newest tenants have had to delay their construction plans for months because of the coronavirus. None of the new stores have set opening dates yet, but they could open late in the summer.

Reach Brandon Tester at [email protected] or 910-817-2671. Follow him on Twitter @BrandonTester.