J.C. Penney Co. slumped after Chief Executive Officer Marvin Ellison resigned to take the top job at home-improvement retailer Lowe’s Cos.
Ellison will step down on June 1 and four top executives will share the day-to-day operations until a new CEO is appointed, J.C. Penney said Tuesday. The shares (JCP) dropped 10 percent on the news in premarket trading.
Ellison, who has been at J.C. Penney since 2014 and assumed the top job a year later, has struggled to turn around the department-store chain even amid improving consumer trends in the U.S. He has worked to streamline expenses and personnel costs while trying to drive sales with big-ticket items like appliances.
At Lowe’s (LOW), Ellison will replace Robert Niblock, who had previously announced his intention to retire.
Ellison has a history in home improvement, having spent more than 12 years in leadership roles at Home Depot Inc. (HD) He will take on the role on July 2, Lowe’s said.
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