Tensions rose overnight when the retailer allegedly tried to remove the signage from the store on San Fernando Road without obtaining the proper city permits.
"This is unacceptable, J.C. Penney, for you to bring a sign company knowing that you cannot remove the signage. You have been put on notice that this cannot happen," said Mayor Pro Tem Antonio Lopez.
Police were called, and those who are against the store shutting down showed up. The store has been in San Fernando for more than 80 years.
Nationally, there is upset about the store changing its pricing just six months after getting rid of hundreds of sales.
Starting Aug. 1, the company will take out one monthly sale and will bring back the word "clearance." An advertising campaign that explains the changes to customers is also in the works. In the past, shoppers and investors have expressed confusion over the store's pricing strategy, which has prompted the changes.
In a statement, J.C. Penney said the changes are needed to help the company achieve its long-term goals.
"We would not have moved forward with this difficult decision if we did not believe it was absolutely necessary for the future growth of our Company," the statement said.
The Associated Press contributed to this report.