Ron Johnson Fired as CEO of J.C. Penney
Ron Johnson has been fired as the CEO of J.C. Penney after less than two years on the job, reports Reuters. He will be replaced by former boss Mike Ullman.
Johnson has been under fire as sales plunged 25 percent during the first year of his plan to reinvent the department store chain. Last week, hedge fund manager Bill Ackman - who handpicked Johnson to lead the company - said the CEO had made "big mistakes" and that the impact of those mistakes had been "very close to a disaster" for the retailer.
Johnson had tried to do away with constant sales in favor of everyday low prices but shoppers appeared not to understand the plan. Shares rose 10.8% on news of Johnson's ousting.
"The lack of testing did him in," analyst Walter Loeb said of Johnson. "It is imperative that someone with a merchandising background take over."
Speculation is already mounting that Johnson could return to his vacant job position as SVP of Retail at Apple.