Cash-strapped department store J.C. Penney (JCP) announced on Thursday the departure of Chief Financial Officer Ken Hannah and tapped retail veteran Ed Record as his replacement.
Record will have his hands full when he takes the new job on March 24 as J.C. Penney has struggled to plot a comeback, as evidenced by the stock’s 35% plunge this year alone. The company’s need to spend heavily on incentives has sparked cash concerns in recent years.
“His extensive department store experience and track record of success make him an ideal candidate as we continue to advance our turnaround," J.C. Penney CEO Myron Ullman III said in a statement.
Record, 45, will succeed Hannah, who is staying on over the next few weeks to ensure a smooth transition. The company didn't say why Hannah is leaving.
Prior to joining J.C. Penney, Record served as chief operating officer and CFO at Houston-based Stage Stores, which operates department and off-price stores.
Record has almost 25 years of retail experience, including time spent as an executive at Kohl’s (KSS) and Federated stores.
Earlier this month, J.C. Penney’s shares tumbled 10% to multi-decade lows after reporting below-consensus holiday shares. The department store said it still has $2 billion in liquidity, easing some of the cash concerns.
Shares of Plano, Texas-based J.C. Penney fell 0.84% to $5.91 on Thursday, extending their 12-month plunge to over 70%.