Ackman Jumps JCP Ship, Puts Shares Up for Sale
August 27, 2013,
NEW YORK-Pershing Square Capital Management, the investment firm run by activist investor Bill Ackman, has put its shares of J.C. Penney stock up for sale.
The shares, which number 39,075,771, constitute 17.7 percent of the retailer's outstanding stock, the largest percentage held by any shareholder. The company is pricing them at $12.90 per share, and the offering is expected to close on Aug. 30.
Four weeks ago, Ackman, then a member of the board, sent a letter to other board members calling for J.C. Penney to speed up its search for a permanent CEO to succeed Myron Ullman, who in turn succeeded Ron Johnson in April. When Chairman Thomas Engibous released a reply underlining the board's support for Ullman, Ackman issued a second letter calling for Engibous' ouster along with repeating the need for an accelerated CEO search.
Last week, J.C. Penney reported a net loss of $586 million in its fiscal second quarter, which ended on Aug. 3. Both its total net sales and same-store sales fell 11.9 percent in the quarter.
Other Articles By Author
Von Tobel Cites Brass Textures Among Top Trends
HFN's DIGITAL EDITION
2017 State of the Industry Report
Cautious Optimism, Mixed Results
Many expected 2016 would be a banner year, but the political and economic climate softened consumer confidence. It was also a year consumers spent more lavishly on home remodeling rather than decorating.
ALSO IN THIS ISSUE:
- TJX Unveils First U.S. Homesense Store - In a time when retailers are reducing store counts, TJX continues to get physical.
- Ikea’s Fluid Spaces - The retailer’s new intros reflect multifunctional rooms.
- N.Y. Home Fashions Market Preview - Textile textures get soft and cozy, colors warmer.