Is Ron Johnson's Time Up at J.C. Penney's (JCP)?
Johnson's strategy for revamping stores and offering straight pricing with no coupons has backfired and led to a major slide in sales. In its latest quarter, same store sales were down an astonishing 32 percent.
In addition to these issue, yesterday, large shareholder and board member Steven Roth of Vornado Realty Trust (NYSE: VNO) sold 10 million shares, suggesting he has lost confidence in the company and Mr. Johnson. Also, the company is involved in a nasty courtroom fight with Macy's (NYSE: M) over selling Martha Stewart Living goods.
Like Roth, fellow activist investor Bill Ackman of Pershing Square is a member of the Board of Directors. He has been an active supporter of Johnson. It is unclear where he stands on the matter now.
After ticking higher on the Wall Street Journal headlines, shares are again heading lower - last down 9 percent to a new 52-week low of $15.22.