This is not the end that JCPenney had in mind for Soltau when it was brought in October 2018 – at least not very soon. Few expected JCPenney to avoid bankruptcy altogether, with its huge pile of debt due in the next few years. But the pandemic pushed JCPenney a step much faster than anyone had imagined.
On January 1, Stanley Shashoua, chief investment officer of Simon Property Group, will become interim CEO of JCPenney, the company’s fourth in six years.
When Soltau took over JCPenney, the store was a mess. Former CEO Marvin Ellison introduced home appliances to the store to get former Sears customers to venture into the mall at JCPenney, from a bankrupt department store to the near future. The gambit failed, Ellison went to Lowe’s, and Soltau was hired to clean things up.
It implemented a “Renewal Strategy Plan”, in which JCPenney reduced the amount of merchandise displayed in stores, cracked a fresh box of paint inside and out, introduced a clean logo and put a new emphasis on trade. electronic. The company’s shares initially increased – up 10% on the day of its announcement.
Everything was down there. Shares fell below $ 1 two months after Soltau took control, as investors understood the reality: JCPenney had $ 4 billion in debt, an unwanted credit rating, a low cash treasury and no sign of change. fast. Few buyers entered its stores, so the company was overwhelmed with excess inventory and struggling with the supply chain without a clear marketing plan or strategy. To move excess clothes, JCPenney had to offer big discounts.
Although Soltau, Joann’s former CEO and veteran retail leader, said her improvement plan was up and running, the company simply got out of time. Covid-19 has thrown the entire retail business into jeopardy and decimated struggling retailers such as JCPenney.
In May, the department store chain went bankrupt, being brought to the brink of years of mistakes. The company went bankrupt a month ago, when mall owners Simon Property Group and Brookfield Asset Management, fearing they would lose one of their biggest tenants, bought JCPenney.
But his prospects remain bleak. The company closed its left and right stores and has not made an annual profit since 2010.
The new owners of JCPenney said they would be looking for a new CEO who would be “focused on modern retail, consumer experience and the goal of creating a sustainable and sustainable JCPenney.” Looks like they didn’t think it was Jill Soltau.
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