In his defense, Ullman has gone on record as saying "he was only notified about the CEO offer a week before it was announced." In my opinion, JCP should not have announced Ullman's appointment until Ullman had a chance to put together, at a minimum, an outline of a strategic plan for moving the company forward. As a result, following the announcement, Ullman seemed to be caught flat-footed: "I don't really have a plan." Great move...really calms Wall Street, shareholders, vendors and employees' already-jittery nerves. No wonder the stock tanked on the announcement of his appointment.
As yet, in day-two of his tenure, Ullman has only (that I know of) given one analyst an interview (Mathew Boss with J. P. Morgan). Ullman needs to step up, make himself visible and publicly present, in broad strokes, his strategy for turning JCP around...at a bare minimum, he needs to outline his priorities to JCP's key publics.
News reports are already floating around, speculating that JCP burned through $500 million in cash for the First Quarter. Ullman needs to quickly address and communicate his goals: stop the cash burn, bring back customers, reinstate promotions and stimulate sales, etc. At present, many news organizations are interviewing third party analysts and experts for comment on JCP's future. But...Where Is Ullman?
The sooner he steps up, the sooner this PPS will have a chance of stabilizing. If ever a company needed one of those "We have nothing to fear...but fear, itself" speeches, it is JCP. But Where Is Ullman?
I'm sure Ullman has mulled over what he would do if he was the CEO again! I think he will hit the ground running and unwinding Ron Johnson's ideas right away. Don't be surprise if he keeps a couple of his ideas....but with BIG sales! JCP will be a $20 stock by Dec 5th!!!
Sentiment: Strong Buy
Here is a great interview with Howard Davidowitz on what JCP needs to do quickly. Davidowitz was one of the early critics of RJ's appointment and his initial take on JCP under Ron-John has been spot on. The priorities outlined by Davidowitz should have been stated yesterday by Ullman. Instead, we get "I don't really have a plan."
Interview with Davidowitz should also be viewed by those posters who keep crowing about the "real estate value."
J.C. Penney Is a Catastrophe; Now It Needs a Survival Plan: Howard DavidowitzThe Daily Ticker
He pretty well summed everything up very concisely - - - - - Davidowitz has taken the exact same position I've taken since the beginning of this "clusterfluck"(thanks Cindy) - - - I used to tear apart Ackman's presentation at the Ira Sohn conference - - - it was so full of pie in the sky speculation it was almost criminal - - - - I've stated all along the real estate will barely pay the debt - anyone thinking otherwise is playing with their hand through the hole in their pocket !!!
I've repeated the same thing over and over - - - - as recently as a couple of weeks ago - - - -
retayl101 • Mar 25, 2013 2:35 PM
I have a feeling we'll see something fairly soon from JCPenney - - - everything is too quiet and too many "no comments" - BOD uttered the words "Possible sale" - I don't believe the taking private theory - - - even though it's not much - Ackman would still have to find someone with actual money to throw at this dog - - - too bad of financial condition for a leveraged buyout - - - every day that passes narrows their options - - - - possibly another chain with a desire to create an instant footprint nationwide??? - - most of the major chains would have 90% overlap with their current stores - - if the BOD and Ackman are very very very sure they have a good plan that will work they can always sell more real estate to generate cash - - - - have to be careful of debt covenants however - - - could spin off real estate into a REIT - payoff debt - close the bottom half of their stores - - stop shops after the 1st dozen - - - FIND SOMEONE FAMILIAR WITH COMPUTERS AND THE INTERNET TO FIX THEIRDAMNWEBSITE - IT'S A DISGRACE - - - the internet would be quicker and easier to transform in a cash generator as opposed to revamping brick and mortar - - - - I would ask WHERE IS JCPENNEY LEADERSHIP but they're probably making their "golden parachute" ironclad !!!!
True enough once the deal is finalized and the terms of the contract inked. But, surely, in a week's time (the space between saying "Yes, I will accept the job" and announcing it)...surely Ullman could have come up with something better than, "I don't really have a plan."
As an experienced retailer and former JCP CEO, he should have been able to quickly see the problems that need fixing and should have put forth a more comprehensive response...From RJ, we heard: "It will take time....I've made mistakes....There's a lot to learn..." Now from Ullman: "I don't really have a plan." Not terribly reassuring as yesterdays plummet in PPS shows.
Chewing on old Lancer now, are we? Ha, Ha...Speaking of chew-toys, I have only seen one lame post from Pennyfart, one in which he satirically (I suppose) takes on the persona of liquidatorspecialist. Same old rant about 'disloyal, whining' employees. Oh well...