J.C. Penney’s problems mount
New York -- J.C. Penney Co. last Tuesday dominated the retail news as its shares dropped 10.6% to a four-year low after reports that one of its largest shareholders had sold a chunk of the troubled company’s stock. And in a late afternoon report, The Wall Street Journal said that a group of Penney directors is ready to get rid of CEO Ron Johnson, or push to sell the chain unless he can stop the company’s heavy bleeding this year.
Vornado Realty Trust sold 10 million shares of Penney stock, half of its stake, at $16.40 per share through Deutsche Bank AG, according to a Bloomberg report. Vornado chairman Steven Roth sits on the Penney board.
Penney was also in the news in regard to its ongoing battle with Macy’s. Martha Stewart testified in New York State Supreme Court on Tuesday that she did nothing wrong is entering into a deal to open up home in-store in Penney stores.
During her testimony, Stewart denied Macy's allegations that she acted unethically in entering into the agreement with Penney. She said that she was only looking to expand and offer new opportunities for shoppers.
Macy's claims that Martha Stewart Living Omnimedia breached a contract with Macy's when it entered into the deal with Penney.