Log in or Register for enhanced features | Forgotten Password?
White Papers | Suppliers | Events | Report Store | Companies | Dining Club | Videos
General Retailers
Department Stores
Return to: RBR Home | General Retailers | Department Stores

Hayman Capital divests entire stake in J.C. Penney

RBR Staff Writer Published 06 December 2013

Hedge fund Hayman Capital Management has divested its entire stake in J.C. Penney, an American mid-range to upscale department stores operator.

J.C. Penny

However, Dallas-based Hayman continues to hold the Plano-based retailer's debt, as told by the fund manager on Bloomberg TV, Reuters reported.

Following this, shares in J.C. Penney fell as much as 10% before closing on Thursday, down by 8.4%.

In September Hayman disclosed a 5.2% stake in Penney. Further, it reduced the stake to about 1.87% in November 2013.

Meanwhile, J.C. Penney, which is trying to regain profitability, noted that Securities and Exchange Commission (SEC) is looking into its liquidity, debt and other financial matters.

In late November, J.C. Penney reported a wider loss for the third quarter compared to the prior year.

The company's net loss for the third quarter widened to $489m from $123m in the year-ago period.

Total net sales for the quarter decreased 5% to $2.77bn from $2.93bn in the same period last year.

J. C. Penney is a holding company, involved in operating department stores across the US and Puerto Rico. The company's product offerings include a comprehensive range of apparel, footwear, accessories, jewelry, beauty products and home furnishings.

These products are sold under various brands such as Worthington, Every Day Matters, Okie Dokie, St. John's Bay, The Original Arizona Jean Company, and Decree.

As of February 2013, the company operated 1,104 department stores in 49 states and Puerto Rico.

Image: JcPenney Store in Aventura Mall in Aventura, Florida. Photo: Courtesy of Aranda56.