Former JCPenney CEO Delivers A Brutal Takedown Of Ron Johnson
"The board has got to take some action. They can't be delusional like I think Ron is on this whole transaction," he said. "The sooner they act, the better. There's thousands of people who work for this company and this has been going on long enough."
Questrom slammed Johnson's credibility, too. Sales numbers have plummeted every quarter since the new CEO took over and began transforming the company. In fact, Q4 of FY2012 may have been one of the worst retail quarters ever."
"Ron is not a reliable source," he said. "You can't say you're going to make your numbers for the year and then drop a billion dollars and four billion dollars later in sales. So if they think it's going to all of a sudden turn around, there's no way they can have any reliable information because Ron is not a source for that."
So, should Johnson be fired? Questrom said that JCPenney "can't continue with the same leadership" if it wants to turn things around.
"Is there a chance that it can turn around?" asked Questrom. "Yeah, if you like to bet on a one-in-a-hundred shot or one-in-a-thousand."
A private takeover would be a good move here and that would eliminate Johnson and put in some competent management. The company could always go back public a year or two later. Shareholders would probably go for $18 -20 versus the chance of nothing with Johnson.