J.C. Penney is closing up shop on thirty-three locations and parting ways with 2,000 employees in efforts to rebound from past struggles Furniture Today reported Thursday.
"As we continue to progress toward long-term profitable growth, it is necessary to reexamine the financial performance of our store portfolio and adjust our national footprint accordingly," Mike Ullman, J.C. Penney CEO said in a statement Furniture Today reported. "While it's always difficult to make a business decision that impacts our valued customers and associates, this important step addresses a strategic priority to improve the profitability of our stores and position JCPenney for future success," Ullman said in a statement Furniture Today reported.
Over 3,000 employees in the retailer's window covering, furniture, and fine jewelry department will have their commission restored in February and March Furniture Today reported.
"As we continue to stabilize the business and regain market share, one of our most important goals is to reconnect with our customer," the company said in a separate statement. "Offering a competitive salary base that includes a commission incentive not only helps in retaining some of our best sales associates, it motivates them to build and maintain stronger customer relationships."
Investor Bill Ackman resigned from the J.C. Penney board in August Forbes reported. According to CNN Money. Ackman was involved in a conflict after he expressed his concern about where the company was going and how management was performing CNN Money reported. Ackman then sold all of his shares in the company back to the retailer CNN Money reported.
J.C. Penney filed the deal with the United States Securities and Exchange Commission along with statements from Pershing in August Reuters reported. Ackman resigned from J.C. Penney's board earlier after conflicts arose about the leadership of the retailer Reuters reported. Ackman was also not pleased with Ullman and wanted to replace him, but couldn't because the company was in support of him Reuters reported. Therefore Ackman stepped down, and Ullman took over as CEO Reuters reported.
Ackman's hedge fund Pershing Square Capital Management started to purchase the retailer in Oct. 2010 at a time when shares were $25 each CNN Money reported.
Pershing then sold all of its 39 million shares to Citigroup, which had shares of $12.90 each giving Ackman about $500 million in losses CNN Money reported.
