JCPenney Again Denies Rumors as Shares Take a Hit

JCPenney Plano, TX—Shares of JCPenney took another beating today as the beleaguered department store once again had to quash rumors that it says are untrue.

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.

 

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Jeff Prine

Jeff Prine, Editor at Large, Accessories Magazine
Jeff returns as a regular contributor to Accessories magazine. Initially Jeff worked as senior editor at Accessories more than 20 years ago and his love of the industry has followed him until present. Since his tenure here, Jeff has continued to report jewelry, watch and other luxury goods trends as executive editor at Modern Jeweler magazine, fashion director at Lustre, and as contributor on products and trends for consumer and trade publications and websites. In addition to his editorial experience, Jeff also served as an adjunct instructor for accessories merchandising at Fashion Institute of Technology. jeffp@busjour.com