J.C. Penney CFO Departs As Turnaround Stalls

(RTTNews) - J.C. Penney (JCP) on Thursday announced a major management change amid signs that investors are growing impatient with the retailer's turnaround plans.

Ken Hannah will depart as Penney's chief financial officer, replaced by former Stage Stores Inc. (SSI) executive Edward Record, effective March 24.

Penney shares have plummeted over the past three years, dropping from above $40 to an all-time low of $4.90. Shares are slightly higher on today's news, with JCP up 3 cents at $5.99.

The U.S. mall fixture recently announced a 2 percent increase in same-store sales for the fourth quarter. The modest holiday-season rise from anemic sales the previous year raised concerns that shoppers have abandoned Penney in favor of more fashionable retailers.

The company ended 2013 with more than $2 billion in total available liquidity, but that may not be enough cash to prevent liquidity problems if Penney does not see a dramatic reversal of fortune.

Hannah was hired as finance chief in May 2012, part of a management team brought on by former Chief Executive Ron Johnson.

Although Johnson's plan to re-invigorate Penney was a flop, and he was ousted in April 2013, Hannah was retained under new Penney CEO Myron Ullman.

Less than a month ago, Penney said it will close 33 underperforming stores and slash 2,000 jobs. The company said the measures will generate annual savings of approximately $65 million.

Hannah will be succeeded by Record, who has nearly 25 years of experience managing the financial and operational performance of multiple retailers.

He spent over six years at Stage Stores, a Houston, Texas-based retailer that operates department and off-price stores, most recently serving as chief operating officer and, prior to that, chief financial officer.

Before Stage, Record served as senior vice president of finance at Kohl's and as controller and senior vice president of finance at Belk.