The company’s stock touched a 12.5 year low earlier today as JCPenney denied that Ken Hannah, its chief financial officer, plans to leave.
“The speculation that Ken Hannah is stepping down as chief financial officer is completely false,” JCPenney said. In fact, the company said that Hannah remains part of CEO Mike Ullman’s “go-forward leadership team,” along with the recently hired Debra Berman as senior vice president of marketing. Hannah came to JCPenney in May 2012 after working at General Electric, Boeing and Home Depot.
Although shares of JCPenney rebounded from their lows after the company’s denial, they still closed down Tuesday still closed down 3.91% to $13.28, leaving them off 32.6% on the year. At their lows today, JCPenney share were at their worst levels since January 2001.
The decline was prompted by a comment of JPMorgan analyst Matthew Boss that he is concerned about the company’s rate of “cash burn.” Last week JCPenney sought to reassure markets by noting it will end the current period of $1.5 billion in cash.
“The company has a highly experienced and focused leadership team in place as we head into the fall season,” JCPenney said in a statement.