JC Penney Denies NY Post Story About CIT Vendor Credit Cut
If yesterday was the worst day in years for Bill Ackman following the surge in his proclaimed mega short HLF and the plunge in his beloved JC Penney, today may just redeem Pershing Square's P&L at least slightly following a company press release that denies the report published yesterday by the Post alleging CIT had cut its factoring ties with JCP vendors.
From the press release:
jcpenney Says News Report About CIT's Action is Untrue
J. C. Penney Company, Inc. (JCP) said that a news report which appeared yesterday is untrue and that it has been told so directly by CIT, the subject of that report. Contrary to the news report, CIT continues to factor and support deliveries from jcpenney suppliers. In fact, jcpenney continues to have the support of all of its key vendors, who have maintained their shipments to the Company. The Company noted that CIT factored merchandise currently represents less than 4% of its overall inventory for the year. The Company further stated it continues to have ample liquidity to manage its business with expectations to close the quarter with approximately $1.5B in cash on its balance sheet.
Which begs the question: is one or more of Ackman's rather public (and wealthy) detractors now using the media to plant false stories about Ackman investments? While illegal this may mean that the public feuds that Bill is engaged in are about to get that much more interesting.
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