JCPenney CEO Ron Johnson Is Out

Tyler Durden's picture

So much for the "transformational" CEO, poached from AAPL and credited with creating the AAPL retail mystique. As per CNBC, he now effectively "out":

  • J.C. PENNEY TO OUST RON JOHNSON AS CEO: CNBC
  • J.C. PENNEY'S CEO JOHNSON `IS OUT': CNBC
  • J.C. Penney names Myron E. (Mike) Ullman III CEO, succeeding Ron Johnson

At least he lasted just a bit longer than the former JCP president Mike Francis, who came, saw, collected $10 million, and quit nine months later.

Why the stock is soaring after hours on this latest admission of defeat is beyond us. If anything, this means JCP is closer to filing than ever as the last bastion of hope at the distressed retailer is now gone.  Update: -7% now.

Full press release:

The Board of Directors of J.C. Penney Company, Inc. [NYSE: JCP], today announced that Myron E. (Mike) Ullman, III has rejoined the Company as  Chief Executive Officer, effective immediately.  He has also been elected to the Board of Directors.  Mr. Ullman is a highly accomplished retail industry executive, who served as CEO of jcpenney until late 2011.  He succeeds Ron Johnson, who is stepping down and leaving the Company.

 

Thomas Engibous, Chairman of the Company’s Board of Directors, said, “We are fortunate to have someone with Mike’s proven experience and leadership abilities to take the reins at the Company at this important time.  He is well-positioned to quickly analyze the situation jcpenney faces and take steps to improve the Company’s performance.”

 

Mr. Ullman added, “While jcpenney has faced a difficult period, its legacy as a leader in American retailing is an asset that can be built upon and leveraged.  To that end, my plan is to immediately engage with the Company’s customers, team members, vendors, and shareholders, to understand their needs, views, and insights.  With that knowledge, I will work with the leadership team and the Board to develop and clearly articulate a game plan to establish a foundation for future success.”

 

Mr. Engibous added, “On behalf of the Board of Directors, we would like to thank Ron Johnson for his contributions while at jcpenney and wish him the best in his future endeavors.”

 

About Myron E. (Mike) Ullman, III

 

Mike Ullman is a veteran retail industry executive with more than 25 years of experience who has served in leadership roles at several of the world’s best-known retail companies.  Prior to spending seven years leading jcpenney, as Chairman and CEO through November 2011 and Executive Chairman through January 2012, he served as Directeur General of the world’s largest luxury group, LVMH Moët Hennessy Louis Vuitton, in Paris; Chairman and Chief Executive Officer of DFS Group Limited, the world’s leading travel retailer; and Chairman and Chief Executive Officer of R.H. Macy & Co., Inc. Mr. Ullman’s prior retail experience also includes leading Wharf Holdings Ltd. in Hong Kong and posts at Federated Department Stores earlier in his career. In addition, he previously served as a White House Fellow in the Reagan Administration, Vice President of Business Affairs at the University of Cincinnati, and as an International Account Manager for IBM Corporation.

 

Mr. Ullman currently serves on the boards of directors of Starbucks Corporation (NASDAQ: SBUX), Saks Incorporated (NYSE: SKS), and the COFRA Group headquartered in Zug, Switzerland, and as Deputy Chairman of the Federal Reserve Bank of Dallas. He is an advisor to the board of directors of the Retail Industry Leaders Association and is a past Chairman of the National Retail Federation. He is also Chairman of the Board of Mercy Ships International, a global medical and human services charity. He previously served as a director of Ralph Lauren Corporation; Taubman Centers, Inc.; LVMH Moët Hennessy Louis Vuitton; Federated Department Stores; and Segway, LLC.

Shame for Ron really: -51% since his official start date.

 

and the instant market reaction (always efficient)...

 

And here is Bill Ackman explaining to CNBC and anyone else listening just what the magic plan was to reincarnate the dying brand. Oh well, time for Plan B.

 

Finally, here is the presentation in which the same Ackman above bashes the same Ullman who just regained the reigns of the foundering retailer: