Local officials react to JCPenney closing

David L. Dye, The Herald, Sharon, Pa.
Updated ·2 min read
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Jan. 8—HERMITAGE — With the JCPenney department store in Hermitage expected to close later this spring, details regarding the closure and what it means for the Shenango Valley Mall are still sparse.

In a Monday news release the company said it will be closing the store in the spring.

"The decision to close a store is never an easy one, " the news release said. "We are grateful to our dedicated associates and the loyal customers who have shopped at our Hermitage, PA location. We continue to work to make every dollar count for America's diverse, working families and welcome them to shop at our other JCPenney stores in the area and at JCPenney.com."

A Saturday story in The Herald about the closing said employees were told to expect the store to close May 5. JCPenney is the Shenango Valley Mall's last anchor store. The mall has about three dozen storefronts.

Hermitage City Manager Gary Hinkson said JCPenney officials had not communicated with the city.

However, the city had been contacted on Friday by officials with Gordon Brothers, who were seeking information regarding the process for a store closing sale.

Hinkson said store closing sales, where a closing business disposes of its inventory, are regulated by the state.

JCPenney has been the Shenango Valley Mall's only anchor store since Macy's and Sears closed their department stores in 2017.

Until late last year, JCPenney was involved in a five-year court battle against the Shenango Valley Mall's owners, which local officials previously said delayed redevelopment of the mall and the surrounding property.

The dispute originated over a 1967 agreement between JCPenney and the mall's then-owner, Crown Construction Co. JCPenney officials claimed a provision of the agreement gave the retailer the right to approve any mall developments that would affect JCPenney.

Over the course of the litigation, both the Mercer County Court of Common Pleas and the state Superior Court ruled against JCPenney.

The case finally concluded in October, when the state Supreme Court ended the lawsuit in favor of the mall's current owners, Butterfli Holdings LLC, an affiliate of Flicore LLC.

By the time the case reached the state Supreme Court, Butterfli officials also sought to evict JCPenney from the Shenango Valley Mall.

Officials with Flicore and Gordon Brothers did not respond to emails sent by The Herald as of Monday evening.

Included in previously-announced proposals to develop the Shenango Valley Mall itself, are plans by the city to develop a mixed-use town center around the mall property.

City officials have secured more than $5.5 million in grants for the project, which was one of the major recommendations of the Hermitage 2030 Comprehensive Plan.

The comprehensive plan provides a guide toward future development in the city.

Herald Business Editor Michael Roknick contributed to this story.

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