J.C. Penney Co. Inc. (NYSE: JCP) is among the old-world retailers not expected to survive. It took another step it cannot afford backward as the company announced the departure of Chief Financial Officer Jeffrey Davis, who will leave October 1. J.C. Penney’s stock fell on the news.
J.C. Penney shares are below $1.70 and have fallen 52% this year. One or two more pieces of bad news, particularly about poor same-store sales or weak earnings, would cause the price to careen toward $1. On its current trajectory, the event could happen this year.
Davis has only had his job since February 2016. However, he was given a good send off. Ronald W. Tysoe, chair of the J.C. Penney board, said:
On behalf of our board and leadership team, I want to thank Jeff for his service to JCPenney. His leadership has been instrumental as both the Company’s chief financial officer and as a member of the Office of the CEO. We wish him much success in his future endeavors, and we thank Jerry for stepping in to assume this leadership role.
Tysoe made the announcement because J.C. Penney does not have a CEO to do so. Chairman and CEO Marvin R. Ellison left on June 1 to become CEO of Lowe’s Companies. The “office of the CEO” that replaced him while J.C. Penney looks for a new leader includes four people, and among those is Davis.
J.C. Penney is running out of sales, options and people.