Activist investor to sell entire stake in J.C. Penney
By Associated Press on Aug 27, 2013, at 2:28 AM Updated on 8/27/13 at 4:05 AM
William Ackman: Pershing Square's leader admitted that the investment in Penney was a "failure" and that retail "has not been our strong suit."
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J.C. Penney's largest investor, former board member William Ackman of Pershing Square Capital Management, is selling his nearly 18 percent stake in the struggling retailer.
The move to sell 39.1 million shares of Plano, Texas-based J.C. Penney Co., announced Monday in a regulatory filing, comes two weeks after Ackman resigned from the board of directors. That was part of a deal to resolve an unusually public battle between the activist investor and the department store operator.
The news comes as Penney tries to recover from a botched transformation plan that was spearheaded by former CEO Ron Johnson, whom Ackman had pushed for the post after joining the board in 2011.
In a letter to investors last week, Ackman admitted that the investment in Penney was a "failure" and that retail "has not been our strong suit."
Shares of J.C. Penney dropped nearly 3 percent in after-hours trading after Ackman's move became known.
Retail
Incredible Pizza Co. will jump into the indoor trampoline park business later this year.
A recurrent favorite, Wal-Mart Stores Inc. once again ranks among top picks of investing professionals who like the retailer's focus on international expansion and growth of its smaller store formats.
