Back in February I posted about the challenge of re-positioning JC Penny. I was concerned about Ron Johnson’s ability to stay the course. Turns out the challenge was too much for the Board: Mr. Johnson resigned today.
The best summary of the action was this: “It’s an unmitigated disaster,” said Hedgeye analyst Brian McGough in an interview. “The board should probably hand in their own resignation as well. It’s a wrong time to fire the guy. They are six months too early or six months too late.”
What happens next? Hard to say, lots of speculation but it’s likely nothing good, except maybe a buyout and re-boot, assuming that’s good.
Re-positioning takes longer than you wish it did.
Mitch
