William Ackman has resigned from the board of department chain J. C. Penney and will be replaced by Ronald Tysoe. The company announced that the changes will be effective from Monday. Tysoe has 16 years of experience as vice chariman at Federated Department Stores Inc.
Activist investor William Ackman said that he has resigned as he feels that it is “the most constructive way forward” for the company. He added that he will not be selling his stake in the troubled retailer. As per the latest data, Pershing Square hedge fund owns 18 percent stake in J. C. Penney. The stake was purchased at $25 per share. The stock was trading at $13.22, flat compared to previous close.
Ackman had said in his letter last week that he has lost confidence in the chairman of the company. The company board supports CEO Myron Ullman and Chairman Thomas Engibous and they will continue with their roles at the retailer.
Meanwhile good news kept coming from European Union and United Kingdom. UK inflation has declined in July and the Bank of England is confident that the target of 2% inflation will be achieved in months to come. The consumer confidence in Germany was higher. The Eurozone industrial production was higher by 0.7% in June.
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