Signage is displayed outside a JC Penney Co. store. in Chicago, Illinois.
Christopher Dilts | Bloomberg | Getty Images
JC Penney CEO Jill Soltau, who was touched to turn around troubled department stores, will leave the company on Thursday.
The company’s new owners, Simon Property Group and Brookfield Asset Management, said Wednesday they were looking for a new leader “focused on modern retail, the consumer experience and the goal of creating a sustainable and lasting JCPenney.”
The Plano, Texas-based retailer filed for bankruptcy in May. It was bought by the two American mall owners in the fall and emerged earlier this month. He joined a growing list of retailers pushed to the limit by the coronavirus pandemic. Still, the problems of the inherited retailer began before the global health crisis. Its sales have fallen annually since 2016. At 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 investment effort after its former CEO Marvin Ellison left to lead Lowe’s. He previously served as CEO of Joann Stores, a textile and handicraft retailer. He also worked for Sears, Kohl’s and Shopko Stores. At the time, news of their rent caused stocks to grow as investors hoped to bring new ideas and drive growth to department stores.
This year, however, the company’s efforts backfired, as its stores closed temporarily during the pandemic and destroyed its already tight finances.
Simon and Brookfield have chosen Simon’s investment director Stanley Shashoua to serve as interim CEO, according to a press release. They have launched an executive search with strategic partner Authentic Brands Group. The licensing firm has stakes in other retailers that have emerged from bankruptcy, including Brooks Brothers and Forever 21.