According to a filing, J.C. Penney announced an offering to sell the common stock held by Bill Ackman’s Pershing Square Capital Management that account for over 39 million shares or about 18% of the company’s outstanding shares.
J.C. Penney reported a fiscal Q2 net loss of $586 million compared to a net loss of $147 million a year earlier. Net sales of $2.66 billion were down 14% from the same three months in 2012.
J.C. Penney announced that William A. Ackman of Pershing Square Capital Management has resigned from the board effective August 12, 2013. The company also announced that retail industry executive Ronald W. Tysoe has been elected to the board.
The Huffington Post reported that J.C. Penney board member and activist investor Bill Ackman, founder and CEO of Pershing Square Capital that owns about 18% of J.C. Penney, slammed his colleagues in an open letter.
Bloomberg reported that J.C. Penney said a report that CIT has stopped funding some of its suppliers is false.
ABF Journal illustrator Jerry Gonzalez shares his interpretation of J.C. Penney increasing its borrowing capacity by $100 million through a 27-bank lender group led by JPMorgan.
Fitch Ratings said in a press release that J.C. Penney drew down $850 million from its $1.85 billion revolving credit facility. Fitch called this as a stop-gap measure before permanent financing is put in place.
Bloomberg is reporting that J.C. Penney received clearance from its lenders to sell billions of dollars in stock and debt if needed as it struggles to complete a turnaround.