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Ullman Returns As Johnson Exits
J.C. Penney Co. Inc. finally hit reboot.
The beleaguered retailer on Monday convinced Myron "Mike" Ullman 3rd to return as chief executive officer as its board called an end to the controversial and costly tenure of Ron Johnson. It is an ironic twist, since Ullman initially was pushed aside in favor of the high-flying Johnson, who was recruited from heading Apple Retail under Steve Jobs.
An indication of how far Johnson had fallen came in Penney's statement revealing the management change. Johnson was not quoted, while the board simply said he was "stepping down and leaving the company."
Chairman Thomas Engibous said, "On behalf of the board of directors, we would like to thank Ron Johnson for his contributions while at J.C. Penney and wish him the best in his future endeavors."
Egnibous described Ullman as "well-positioned to quickly analyze the situation J.C. Penney faces and take steps to improve the company's performance."
It will be quite an uphill climb. Penney's lost $985 million last year as sales fell 24.8 percent to $12.99 billion. Shares of the company fell 50 percent to $15.87 during Johnson's tenure, leaving the company with a market capitalization of just $3.49 billion -- well below that of competitor Kohl's Corp. at $10.66 billion and Macy's Inc. at $17.13 billion.
Ullman said he was contacted by Penney's chairman over the weekend, given a couple of days to discuss with his wife whether he wanted to return, and found himself back in the role on Monday. "I have six kids and I sit on six boards," he said. "There were a lot of things we had to consider. My instinct was, I would love to take the job, but let me discuss it with my wife."
Asked when he starts, Ullman, displaying his usual wry humor, said, "I guess tomorrow. Maybe today. I don't know."
Penney's said in a regulatory filing that Ullman, 66, will get a base salary of $1 million to lead the retailer.
Shares of Penney's gained ground in after-hours trading Monday as word spread that Johnson was out. The stock, however, reversed course and fell 6.9 percent to $14.78 when Ullman was named Johnson's successor.
Since leaving Penney's on Jan. 27, 2012, Ullman...