This isn’t the end JCPenney had in mind for Soltau when she was
Brought in October 2018 – At least not that soon. Few would have expected JCPenney to avoid bankruptcy altogether with the maturity of massive debt accumulation in the next several years. But the pandemic pushed JCPenney over the precipice much faster than anyone had imagined.
On January 1, Stanley Shawwa, chief investment officer of Simon Property Group, will become the interim CEO of JCPenney, the company’s fourth in six years.
When Soltau took charge of JCPenney, he rose up
The store was a mess. Ex-CEO, Marvin Ellison, introduced hardware to the store to lure ex-Sears customers venturing across the mall to JCPenney, from a penniless store to another store soon. The maneuver failed, Ellison left for Lowe, and Soltau was hired to clean things up.
executed “
Plan for a regeneration strategyJCPenney reduced the amount of merchandise it displayed in stores, slapped a new can of paint inside and out, introduced a clean slogan and drove the new focus on e-commerce. The company’s stock rose initially – up 10% the day it was announced.
Everything was down from there. Inventory
It dropped to less than $ 1 Two months after Soltau took charge because investors understood reality: JCPenney was in $ 4 billion in debt with an unwanted credit rating, a flooded cash stock and showing no signs of a quick turnaround. Few shoppers came to its stores, so the company was saddled with excess inventory and supply chain difficulties with no clear marketing plan or strategy. To transport the extra clothes, JCPenney had to offer big discounts.
Although Soltau, former Joann CEO and veteran retail leader, has said her improvement plan has started to work, time is up. Covid-19 has thrown the entire retail business into distress, decimating struggling retailers like JCPenney.
In May, the store chain with floors
Filed for bankruptcyHaving reached the edge of a precipice due to years of fatal mistakes. The company
It emerged from bankruptcy A month ago, when malls owners Simon Property Group and Brookfield Asset Management purchased JCPenney, fearing losing one of their biggest tenants.
But its prospects remain dim. The company has closed stores left and right and has not recorded an annual profit since 2010.
JCPenney’s new owners said they will look for a new CEO “focused on modern retail, consumer experience, and the goal of creating a sustainable and enduring JCPenney.” Apparently, they couldn’t believe this was Solo’s generation.
“Explorer. Devoted travel specialist. Web expert. Organizer. Social media geek. Coffee enthusiast. Extreme troublemaker. Food trailblazer. Total bacon buff.”
