Hedge fund manager William Ackman said that the chief executive officer he picked to turn around struggling retailer JC Penney was a mistake.
Ackman, the founder and CEO of New York-based Pershing Square Capital Management, has said that Ron Johnson has made “big mistakes” which had a “disastrous” impact on JC Penney.
The article explained that Johnson’s new pricing strategy and his plan to stock the retailer with more fashionable merchandise did not sit well with both JC Penney’s core clientele and new shoppers, as its stock price dropped 27.6% in the first quarter of 2013.
Ackman, whose hedge fund is JC Penney’s largest shareholder, blamed the plummeting stock on bringing on “too much change too quickly without adequate testing on what the impact would be.”
The retailer has brought their old pricing strategy back to attract customers.
Founded in 2004, New York-based Pershing Square manages $10 billion in assets.