Hedge fund manager Ackman says mistak...

Hedge fund manager Ackman says mistakes made in JCPenney turnaround

Posted in the JC Penney Forum

They Ron Johnsoned it

Hampton, VA

#1 Apr 5, 2013
Hedge fund manager Ackman says mistakes made in JCPenney turnaround

Svea Herbst-Bayliss and Katya Wachtel, Reuters

3:54 pm, April 5, 2013

BOSTON (Reuters)- Hedge fund manager William Ackman said that Ron Johnson, the chief executive he handpicked to turn around JC Penney, has made "big mistakes" and the impact on the struggling retailer has been "very close to a disaster."

The "criticism is deserved," Ackman said on Friday of Johnson, a former Apple executive who has come under fire for his dramatic plans to overhaul the staid retailer with cost cuts, more fashionable merchandise and a new pricing strategy.

http://my.chicagotribune.com/#story/sns-rt-us...
The RonJohnson experience

Hampton, VA

#2 Apr 5, 2013
Note: Ackman takes no responsibility for the disaster, neatly ignoring he lobbied for Ronnie, the 52 million upfront, the 5 million in stocks, the million in an option to buy stock at a cheap price. No, it is the customer's fault, the public for not getting it or recognizing genius when they see it.
I labelled this crap change for the sake of change. Technologies used for the sake of technologies. Just the lack of queues where you have to run down some roaming iPod totter is just a novelty act. Can you image a bank setup that way? The fastest checkout is one single queue feeding multicheckout counters if first in, first out is what you desire and to keep your staff busy. You ever notice the single queues at Disney, Disney knows how to handle this problem. The problem? For the above money thrown at Ronnie he had to come up with a cheesy 3 ring circus.
The real problem? Two people with huge, huge egos and greed driven.

Since: Mar 13

Pittsburgh, PA

#3 Apr 5, 2013
Ackmans hedge fund is about to loose big on JCP:)

hedge funds are NOT retailers, I hope big looses convince hedge funds to stay out of retail.

Frankly if Ackman went bankrupt I would have a party:)
Concerned

Dallas, TX

#4 Apr 6, 2013
Who is in charge of making major decisions for a corporation? The Board of Directors. They make the plan and task the CEO to implement the plan.

Who is on the BOD? Ackman! Who bought his way on to the BOD? Ackman! Who wasted all of JCP cash on a worthless Stock Buyback? Ackman! Who hired Johnson and gave him over $100mm in pay and stock to do as he pleases with JCP? Ackman!

But yet it's Johnson's fault ... Yeah right Ackman ... we are falling for that one! The fault rides on one man alone for this whole disaster ... ACKMAN!
The RonJohnson experience

Hampton, VA

#5 Apr 6, 2013
Johnson didn't have to take the job and Ronnie boy most likely ran his mouth how he would Apple Penny's. They are both to blame, Ackman a little more. The implementation is all Ronnie's, his vision, this clown just will not back off that mini store crap, this is all he has going, the only reason for 52 million, the stock perks. He just isn't that bright.

Just like two drunks are bad company for each other, two moRons enable each other. The two of them apart is somewhat bad, together they are greater than the sum, a SuperMoRon. You are in the presence of greatest.

Since: Mar 13

Pittsburgh, PA

#6 Apr 7, 2013
Part of the problem, ackman publically stated even if this plan doesnt work we can sell the real estate for a nice profit.

Businessmen like ackman have no concern for the company, their workers suppliers etc. A big economic dump is predcted:( Many see raging inflation and a stock market collapse far larger than the previous one. this would destroy the value of commercial real estate.

Ackmans hedge fund may be at great risk.

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