Hedge fund manager Bill Ackman has resigned from the board of retailer JC Penney, ending the public feud between the two entities.
The Wall Street Journal reported that Ackman, whose New York-based hedge fund firm Pershing Square Capital is JC Penney’s largest shareholder, stepped down Monday and has been replaced by former Macy’s executive Ronald Tysoe. The article also said that the retailer would name an additional director in the near future.
Ackman and the retail giant have been involved in a public rift after the hedge fund manager pushed to oust JC Penney chairman Tom Engibous. Ackman claimed that JC Penney’s board “isn’t functioning effectively” with major decisions made without the advice of all directors. The hedge fund manager also claimed that important information regarding the retailer has been withheld from him.
JC Penney's board has since declared its "overwhelming support" for Engibous and CEO Myron "Mike" Ullman, whom Ackman also argued should be replaced.
Pershing Square, which owns 18% of JC Penney, currently manages approximately $10 billion in assets.