If you’re a struggling retail giant so desperate for customers that you’ve resorted to begging for them, the last thing you want is to appear scattered, conflicted, and petty. But that’s exactly how J.C. Penney looked last week after a dispute broke out between its largest shareholder, hedgefund manager William Ackman, and the company’s CEO, Mike Ullman, following a scathing letter from Ackman calling for Ullman’s ouster.
This morning, J.C. Penney announced Ackman’s resignation from the board. “At this time, I believe that the addition of two new directors and my stepping down from the board is the most constructive way forward for J.C. Penney and all other parties involved,” Ackman said in a statement.
The resignation was a quick resolution to a conflict that served only to distract J.C. Penney from getting itself back on track. The company has had a rough year, and faces a bit of an identify crisis, with billions in lost revenue and a stock in free-fall.
For now, Ullman is out of the hotseat, but the search for a new CEO will likely continue.