J.C. Penney Co. Inc. (NYSE: JCP) announced Thursday morning that CFO Ken Hannah is leaving the company and will be replaced by Ed Record, who has 25 years of retail management experience, most recently as COO at Stage Stores Inc. (NYSE: SSI). Record’s appointment is effective on March 24.
No reason was given for Hannah’s departure, but because he is a holdover from the failed regime of former CEO Ron Johnson, the change should not be a huge surprise. Analysts at Sterne Agee have said that Record’s appointment is a very positive development for J.C. Penney:
He is very well respected throughout the industry and will add a critical layer of capital discipline that JCP requires at this stage of the game. Looking ahead, if CEO Mike Ullman can surround himself with additional hires in the coming months, the outlook for JCP will certainly improve.
Record will report directly to CEO Mike Ullman and will join the company’s executive board.
Capital discipline and obtaining new financing are certainly important for the company, but J.C. Penney needs to sell more stuff if it is to survive. So far, that has not been happening.
Shares were up about 0.5% in premarket trading Thursday, at $5.99 in a 52-week range of $4.90 to $23.10.