“Firing JCPenney CEO Ron Johnson amid poor sales results would be an irresponsible move by its board, Brian McGough of Hedgeye Management said Thursday on CNBC,” Bruno J. Navarro reports for CNBC. “‘Who am I to go against Allen Questrom, right? He’s the godfather of retail,’ he said. ‘But I think the fact of the matter is if this board wants to declare Chapter 11, I think probably the fastest route to get there is to fire Ron Johnson.'”
“McGough’s comments came a day after former JCPenney CEO Allen Questrom criticized the company’s board of directors and chief executive,” Navarro reports. “‘The board has to take action. They can’t be delusional like Ron Johnson is,’ he said on CNBC. ‘This has been going on long enough. You can’t say you’re going to make your numbers for the year and then drop a billion dollars.'”
Navarro reports, “McGough said that he believed the board must have expected ‘a sales disruption’ along with changes, as well as lower revenues, at least temporarily. ‘I think if the board were going to come out and if they were going get rid of him now based on what he did in Year One, then it would be a pretty irresponsible move by the board, and they should probably put their own resignation in as well,’ he added.”
Read more in the full article here.
MacDailyNews Take: Pain.
[Thanks to MacDailyNews Readers “Lynn Weiler” for the heads up.]
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