Liquidation of the store will begin Sept. 3, according to a statement from JCPenney, and the store is expected to close in mid-November.
"Following a comprehensive evaluation of our retail footprint and a careful analysis of future strategic fit for the Company, JCPenney has decided to close its Collin Creek Mall store, which was previously planned for renovation alongside the Collin Creek Mall redevelopment," the statement said.
The store has been a key consideration in the Collin Creek Mall redevelopment project. JCPenney was the mall's only anchor store that survived the first phase of construction. The store had been expected to remain open while the developer constructed a new building for JCPenney on the south side of the property.
The project will be able to continue without delays from the closure, according to Plano City Manager Mark Israelson.
"We are sad and disappointed JCPenney will no longer be a part of the exciting new development at Collin Creek," Israelson said. "With today’s economic challenges, we are certainly empathetic to difficult business decisions like this. Fortunately, the zoning in and around the project is flexible enough to absorb this change and keep the robust momentum moving forward."
Developer Centurion American reported no delays as it moved to demolish the former Dillard's anchor store earlier this spring.
JCPenney announced more than 150 store closures in June—not including the Collin Creek Mall store—and that more closures would likely follow in phases.
These closures help reduce the company's store footprint so JCPenney can focus on its strongest stores and e-commerce site, as previously reported by Community Impact Newspaper.
The company filed for bankruptcy protection in May.