Some companies are able to take hits, one after the next, and keep on ticking. Others, however, are not nearly as stable. Right now, many are beginning to wonder where J.C. Penney Company, Inc. (NYSE:JCP) fits into the equation.
While the retailer would have liked for this to be the end of the drama, it appears that things are beginning to heat up once again.
This time around, Vornado Chairman and Chief Executive Steven Roth is making news. He decided that he no longer wants to be part of the company’s board, resigning his post late last week.
What does this mean for J.C. Penney Company, Inc. (NYSE:JCP)?
The fact that Roth resigned from the board is one thing. Unfortunately for Penney, this is only part of a bigger story.
Vornado, an owner of 6.1 percent of Penney shares, recently announced at an investor conference that it will sell all of its 13.4 million shares in the near future.
There was a time not so long ago when J.C. Penney Company, Inc. (NYSE:JCP) was riding high on the saddle. It was 2010 and Bill Ackman’s Pershing Square Capital Management decide to purchase a 16.4 percent stake in the company, hoping to make changes and turn things around for the retailer.
During the same time, Vornado, well known for being the owner of retail and commercial property in New York, snapped up a 9.9 percent stake in the company.
Fast forward a few years and things have taken a nosedive. Ackman bailed out last month, and Roth is doing the same this month.
This brings us back to the original question: can J.C. Penney Company, Inc. (NYSE:JCP) continually take hits, such as these, and keep on ticking? Right now, the company is on shaky ground with nobody sure of what the future holds.
While some are giving up on the company, others are still hoping for a turnaround. Here are just a few of the hedge fund managers who continue to invest: Patrick Mccormack, Larry Robbins, Christian Leone, and Chase Coleman.