J.C. Penney is going to war against a former employee who outed the department store for its questionable discounting practices.
The department store was drastically hiking prices on items, cutting them back and then advertising huge "discounts," the former employee, Bob Blatchford, told the Today show last July. In one case, a "rack of $7 shorts became $14, and then they were 50 percent off," a separate J.C. Penney worker told the Today show.
"I saw a lot of pricing teams going through the store, raising the prices, mostly doubling -- towels and clothing," Blatchford
told NBC's Jeff Rossen. "Then they would go on sale, and they wouldn't always go on sale for 50 percent off. Not only was it a fake sale, but they were actually paying more than they would have been previously."
Ominously, Blatchford told Today, "I don't think Penney's will survive if they keep doing this."
Now it's Blatchford who is fighting for survival. Two days after his appearance on the Today show, he was fired from J.C. Penney in St. Petersburg, Fla., where he was a custom decorating studio coordinator. When he filed for unemployment benefits, J.C. Penney contested his claim, he said. J.C. Penney also recently filed an arbitration petition to get Blatchford to give back any company documents that he might have. But Blatchford thinks the arbitration is really just an attempt to discourage him from speaking out about the company.