Hedge fund manager Bill Ackman, whose New York-based hedge fund firm Pershing Square Capital is the retailer’s largest shareholder, is pushing JC Penney to oust its chairman Tom Engibous.
In a letter obtained by Bloomberg, Ackman claimed that JC Penney’s board “isn’t functioning effectively” with major decisions made without the advice of all directors. Ackman also said that important information regarding the retailer has been withheld from him.
Ackman is also calling for JC Penney’s board to meet “as soon as possible,” and has recommended former that JC Penney CEO Allen Questrom succeed Engibous. Questrom has said that he will consider returning if he approves of the department store’s next CEO.
eVestment previously reported that Ackman has expressed regret in picking Ron Johnson as CEO in an attempt to turn around the struggling retailer. Ackman said that Johnson has made “big mistakes” which had a “disastrous” impact on JC Penney.
Founded in 2004, New York-based Pershing Square manages $10 billion in assets.