JC Penney ousts CEO Ron Johnson
Tuesday, April 9, 2013
NEW YORK (AP) — J.C. Penney’s board of directors has ousted CEO Ron Johnson after only 16 months on the job as a risky strategy backfired and led to massive losses and steep sales drops.
In a statement issued late Monday, the department store chain said that it has rehired Johnson’s predecessor Mike Ullman, 66, who was CEO of the department store chain for seven years until November 2011.
Penney reported dismal fourth-quarter results in late February that capped the first full year of a transformation plan where Penney amassed nearly a billion dollars in losses and its revenue tumbled almost 25 percent to $12.98 billion.
Under Johnson, 54, Penney embarked upon a strategy that included ditching coupons and most of its sales events in favor of everyday low prices.
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