Signs are displayed outside a JC Penney Co. store in Chicago, Illinois.
Christopher Dilts | Bloomberg | Getty Images
Jill Soltau, CEO of JC Penney, who was scheduled to turn the struggling department store around, will leave the company on Thursday.
The company’s new owners, Simon Property Group and Brookfield Asset Management, said on Wednesday that they are looking for a new leader “who focuses on modern retail, the consumer experience and the goal of creating a sustainable and long-lasting JCPenney”.
The Plano, Texas-based retailer filed for bankruptcy in May. It was purchased by two mall owners in the United States in the fall and appeared earlier this month. He joined a growing list of retailers pushed to the brink of the coronavirus pandemic. However, the legacy retailer’s problems started before the global health crisis. Its sales have fallen annually since 2016. By the time it filed for bankruptcy, its footprint of approximately 860 stores was less than a quarter of its store base in 2001.
About two years ago, the company hired Soltau to lead its recovery effort after its former CEO Marvin Ellison left to lead Lowe’s. Previously, she served as CEO of the fabric and craft retailer Joann Stores. She also worked for Sears, Kohl’s and Shopko Stores. At the time, the news of her hiring caused the stock to skyrocket, as investors expected her to bring new ideas and drive growth in the department store.
This year, however, the company’s efforts were delayed as its stores temporarily closed during the pandemic and damaged its already struggling finances.
Simon and Brookfield chose Simon’s investment director, Stanley Shashoua, to serve as interim CEO, according to a press release. They launched an executive search with strategic partner Authentic Brands Group. The licensing company has stakes in other retailers that emerged from bankruptcy, including Brooks Brothers and Forever 21.