No one wants to run J.C. Penney
The company's looking for a new CEO, but everyone it approaches balks at the lack of resources, according to a former director.
That's the job J.C. Penney (JCP) is trying to sell, but -- just as with the $3,000 sectional couches in its stores -- no one is buying. The company's CEO search is coming up empty, according to Bill Ackman, the hedge fund manager who quit the board last week.
It's not that the company's previous CEO, Ron Johnson, left shoes too big to fill after he was fired in April. Instead, according to Ackman, J.C. Penney doesn't have enough cash or other resources for a decent CEO to work with.
'We were unable to attract a long-term CEO at the time we replaced Ron because the company needed capital and the CEO candidates we approached would not come on board without the company having adequate financial resources," Ackman said in the letter sent to his hedge fund investors this week, according to The Huffington Post.
That leaves interim CEO Mike Ullman continuing in his position. And Ullman has plenty on his hands, with his efforts to undo some of Johnson's policies and reverse strategies mid-course.
To see what a new CEO would be taking on, let's take a peek at the company's last reported quarter. Sales, already battered after Johnson's disastrous pricing experiments, fell nearly 12% from a year earlier to $2.66 billion. Profit was nowhere to be found; instead the company lost nearly $600 million in just three months. And revenue at stores open a year -- a crucial metric for the retail industry -- fell 11.9% on top of a 21.7% plunge a year ago.
So who would take this job? Someone who is crazy, desperate or has been offered a giant truckload of cash. Hopefully Penney has been stashing some dollars in its $5,800 S&F Christiana Plush king mattresses.
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They haven't asked me. The first thing I'd do is bring back the old tee shirts. The heavy cotton ones that lasted forever and fit great.
I'd make the store a basics place where good value was a balance of price and quality.
I'll send in my resume now.
You mean to tell me, that there isn't a CEO worthy prospect out there to take this job, and do it with no promise of millions of $$$$ and all the other fringe benefits that bullcrapp overpaid CEO thieves get?!
I took my kids to Penney's for back to school shopping last week and it was awesome! The prices were excellent, the clothes were what my girls wanted, and I earned rewards, too. Because I was using my JCP credit card, I got to bypass the regular check-out line and a clerk rang up my sale on her smart phone. She made sure I got all the discounts and coupons I was entitled to. It was a great experience. I am definitely going back. I also love the hair salon. I just got the best hair cut/style, ever. And it cost no where near what I used to pay at Gene Juarez, located in the same mall.
If you are skeptical, this shopper gives JCP the big thumbs up. If you haven't been there in a while, give it a try!
but where else will i find my favorite style of shirt that actaully fits D:
seriously JCP is the only place that I know of that sells TALL verieties of casual shirts... i need that extra lenght...
Went there the other day to buy several colors of polo shirts they had on sale..When I got there they only had 2x size in one shirt and only 2 colors....went into the catalog to order them and they were out of sizes and colors in the catalog,,,,they have become a pretty worthless place to shop. Too bad !!!
I used to buy almost everything there and now I buy very little.
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There was no specific news catalyst behind today's slide, which had the markings of broad-based profit-taking. Seven of ten sectors settled with losses of 1.0% or more while only two groups ... More
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