If J.C. Penney doesn’t recover from its massive sales downslide in the next six months, the company could be sold or its CEO replaced, according to a report in The Wall Street Journal.
The newspaper, quoting “people familiar with the matter,” reported that Penney’s board is running out of patience with CEO Ron Johnson, the former Apple chief whose attempts to change the company have been widely blamed for a sharp decline in sales.
The newspaper added that the board will evaluate results in the next six months, and is particularly looking at results from its new Joe Fresh boutiques and renewed home department.
The newspaper’s report is another sign that the financial community has soured on the Penney reinvention. Both Citigroup and Oppenheimer & Co. have downgraded the company’s stock, according to Bloomberg, with the Citigroup analyst arguing that any sales improvement may take longer than originally forecast.