Ellen has nothing to do with it. Penny's isn't going out of business. They're simply eliminating redundant and obsolete positions.
Not yet, they aren't. Usually, these types of actions are the beginning of the end. They've previously sold off the Eckerd Drug Store chain, got out of the catalog business, and closed their catalog stores. Now they are involved in a large scale reduction of managerial positions. In another year or so, don't be surprised if they announce that they are closing their less profitable stores. After that, they'll either seek a merger with another chain (similar to K Mart/Sears) or file under Chapter 11. All of this, of course, is just my opinion. I hope I'm wrong.