In a report by the Wall Street Journal, Investor Bill Ackman is firing tirades against JC Penney on its recent company strategies. Bill Ackman had raised fire against J.C. Penney's (JCP) board for hiring people without his input. Ackman also demanded current Chairman Thomas Engibous to be removed from the position. Ackman is JCP's largest shareholder and board member.
In addition to his two claims, Ackman also disclosed that JCP's sales are dwindling and insufficient to support the company in the long term.
In response, the rest of the board held a conference Sunday afternoon to discuss the possible actions they can take against the irate and demanding fellow board member. The board clearly thinks that Ackman's actions and words are putting the reputation of the company in jeopardy.
Breakout co-host Matt Nesto agrees with Ackman's decision to air out the problems with JCP, no matter how damaging. Matt Nesto stated that, "the fact of the matter is Tom Engibous is the Chairman of the company, it's his job to manage the board and right now the board has gone out of control."
JCP will be reporting its earnings next week. Analysts expect a USD1.02 billion loss on sales. Ackman, on a memo, disclosed that this was an optimistic figure.
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