Apple Inc. (AAPL), McDonald’s Corporation (MCD): Ackman to Sell J.C. Penney Company, Inc. (JCP) Stake at $470 Million Loss

J.C. Penney ended up recording nearly $1 billion in losses and a 25% drop in revenue in the fiscal year that ended Feb. 2, the first year of the transformation plan. Since returning to J.C. Penney’s helm, Ullman is bringing back basic merchandise like loose-fitting khakis and restoring frequent promotions. But sales declines and losses continued into the first and second quarters as Johnson’s legacy continued to cast a shadow on the results.

Still, the chain offered some encouraging news in its second-quarter report: revenue improved from month-to-month, and the decline in its online business slowed significantly. The retailer also said it saw a good start to the back-to-school shopping season.

In a letter to investors last week, Ackman said that his investment in J.C. Penney was a “failure” and that retail “has not been our strong suit.”

Ackman’s Pershing Square Capital Management invests in and bets against a wide range of businesses, including McDonald’s Corporation (NYSE:MCD), insurance company MBIA Inc. (NYSE:MBI) and Canadian Pacific Railway Limited (USA) (NYSE:CP). But Ackman has been particularly vocal about his dealings with J.C. Penney lately as the department store struggles to turn around its business.

Last Thursday, J.C. Penney Company, Inc. (NYSE:JCP) adopted a plan to prevent a takeover attempt though it said there was no current attempt to take over the company. However, the so-called “poison pill” can be put into effect if an individual or an entity acquires 10% or more of the company’s outstanding stock.

J.C. Penney won’t receive any proceeds from Ackman’s stock offering, which is targeted to close on Aug. 30.

The article Ackman to Sell J.C. Penney Stake at $470 Million Loss originally appeared on Fool.com and is written by Associated Press.

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