J.C. Penney Company, Inc. (NYSE:JCP
J.C. Penney burning through cash
It was a tough quarter for J.C. Penney Company, Inc. (NYSE:JCP), according to Michael Binetti, executive director at UBS Investment Bank.
In the wake of an attempted transformation that failed to resonate with the department store’s traditional, price-sensitive shoppers, management is scrambling to cancel orders and cut exposure to misaligned categories such as chic home goods and trendy fashions. It has had to discount and offer coupons much more than anticipated, Binetti said.He looks for J.C. Penney Company, Inc. (NYSE:JCP) to report same-store sales down 14 percent in the second quarter, but he predicts that those numbers will turn positive in the second half of the year—up 3 percent in the third quarter and 5 percent in the fourth.
Is This Man to Blame for All JCPenney's Troubles?
The recent sagas of troubled retailer J.C. Penney Company, Inc. (NYSE:JCP) include tail-diving share prices, widespread executive turn-over, and more than 40,000 jobs lost store-to-store. Former CEO Ron Johnson bore the brunt of the blame when sales figures slipped and then crashed due to a "no coupon" sale policy that ultimately alienated JCP's core customers. But over the last week (and right in time for the company's earnings report to be released tomorrow) fingers are pointing to hedge fund manager, the retailer's largest shareholder, and former board member Bill Ackman.
JCPenney Says It Has Reached An Agreement For Bill Ackman To Sell His Massive Stake
J.C. Penney Company, Inc. (NYSE:JCP) has reached an agreement with Bill Ackman so Pershing Square can begin to sell its stake in the retailer, according to an 8-K filed with the SEC on Friday. From the filing: On August 13, 2013, J. C. Penney Company, Inc. (the “Company”) entered into a Registration Rights Agreement with Pershing Square Capital Management, L.P., PS Management GP, LLC, Pershing Square GP, LLC, William A. Ackman and certain affiliated Pershing Square funds (collectively, the “Holders”).
Some Cuyahoga County stores offer inaccurate back-to-school prices
Not all Cuyahoga County shoppers got what they bargained for when doing their back-to-school shopping trips earlier this month. The Cuyahoga County Department of Consumer Affairs audited 138 suburban stores the week of Aug. 5 and discovered at 20 stores, the advertised prices on some back-to-school specials were inaccurate. The 20 stores included Marc's stores in Broadview Heights, Brook Park, Lakewood, Middleburg Heights, South Euclid and Westlake; Walgreen's stores in Berea, Cleveland Heights, East Cleveland, Lakewood and Shaker Heights; OfficeMax stores in Mayfield Heights, Middleburg Heights, Rocky River and Solon; CVS Pharmacies in Euclid and Mayfield Heights; the Dollar General in Cleveland Heights; the Macy's department store in Richmond Heights and the Target in Mayfield Heights.