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JC Penney

Ackman sells every one of his shares as his JC Penney brand overhaul fails

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By Jennifer Faull, Deputy Editor

August 27, 2013 | 1 min read

As JC Penney, one of America’s largest brands, struggles to attract consumers, its main shareholder has jumped ship.

Hedge fund manager William Ackman sold his entire stake in JC Penney after his attempts to overhaul the retailer failed. He quit the board two weeks ago.

39.1 million shares, equivalent to an 18 per cent stake in the company, were sold to Citigroup Inc at a fraction of the $20.01 price he bought them for.

However, JC Penney is optimistic in its plans to turn things around, having brought in Kraft Foods executive Debra Berman as senior vice president of marketing earlier this month.

It is hoping Berman will revitalise its struggling brand, whose store sales fell 25 per cent last year.

At the time, Berman said: “There is huge opportunity to remind America's families why it is so great to shop at JC Penney while attracting new customers to the brand.”

She added: “This can be achieved through targeted campaigns that creatively highlight our unique and authentic combination of style, quality and value.”

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