Ron Johnson Out At JCPenney

Mike Ullman, the former chief executive of the company, will take the helm as interim CEO, the company said in a statement.

CNBC first broke the story, citing an anonymous source.

Shares initially soared 10 percent on the news that Johnson was leaving, but have been falling since it was announced Ullman was taking over.

Johnson took over the company 16 months ago and announced an aggressive turnaround plan, which included doing away with the retailer's popular coupon program and creating shop-in-shops that showcased certain vendors.

But that strategy has largely failed, with sales down 32 percent in the fourth quarter.

As the company burned through available cash and resources, the industry was "taking bets" on when Johnson would get fired, reported Richard Collings at The Deal. Last week, it was revealed that his compensation package fell 97 percent.

Even Bill Ackman, the hedge fund manager and investor who recruited Johnson, recently called his tenure a "disaster."

"One of the big mistakes was perhaps too much change too quickly without adequate testing on what the impact would be," Ackman said at a Reuters conference last week.

Before his tumultuous tenure at JCPenney, Johnson was considered a visionary for his work on Apple's retail stores.

In the company statement, Ullman said he would work with customers, shareholders, and associates to make JCPenney better.

"While JCPenney has faced a difficult period, its legacy as a leader in American retailing is an asset that can be built upon and leveraged," Ullman said.

But JCPenney can't simply return to its old strategy, Liz Dunn, an analyst at Macquarie Capital told CNBC.

"I don't think they can simply return to the old strategy and all will be well," Dunn said. "They've got some big questions to answer and I think the release sort of hinted at that when Ullman said he's got some work to do to even figure out what's salvageable."

Ullman served as JCPenney's chairman and CEO for seven years until November 2011, and was the company's executive chairman through January 2012.

Here's the full release:

(Thomson Reuters ONE via COMTEX) -- Plano, Texas, April 8, 2013 - The Board of Directors of J.C. Penney Company, Inc. [NYSE: JCP], today announced that Myron E. (Mike) Ullman, III has rejoined the Company as Chief Executive Officer, effective immediately. He has also been elected to the Board of Directors. Mr. Ullman is a highly accomplished retail industry executive, who served as CEO of jcpenney until late 2011. He succeeds Ron Johnson, who is stepping down and leaving the Company.

Thomas Engibous, Chairman of the Company's Board of Directors, said, "We are fortunate to have someone with Mike's proven experience and leadership abilities to take the reins at the Company at this important time. He is well-positioned to quickly analyze the situation jcpenney faces and take steps to improve the Company's performance."

Mr. Ullman added, "While jcpenney has faced a difficult period, its legacy as a leader in American retailing is an asset that can be built upon and leveraged. To that end, my plan is to immediately engage with the Company's customers, team members, vendors and shareholders, to understand their needs, views and insights. With that knowledge, I will work with the leadership team and the Board to develop and clearly articulate a game plan to establish a foundation for future success."

Mr. Engibous added, "On behalf of the Board of Directors, we would like to thank Ron Johnson for his contributions while at jcpenney and wish him the best in his future endeavors."

About Myron E. (Mike) Ullman, III

Mike Ullman is a veteran retail industry executive with more than 25 years of experience who has served in leadership roles at several of the world's best-known retail companies. Prior to spending seven years leading jcpenney, as Chairman and CEO through November 2011 and Executive Chairman through January 2012, he served as Directeur General of the world's largest luxury group, LVMH Moet Hennessy Louis Vuitton, in Paris; Chairman and Chief Executive Officer of DFS Group Limited, the world's leading travel retailer; and Chairman and Chief Executive Officer of R.H. Macy & Co., Inc. Mr. Ullman's prior retail experience also includes leading Wharf Holdings Ltd. in Hong Kong and posts at Federated Department Stores earlier in his career. In addition, he previously served as a White House Fellow in the Reagan Administration, Vice President of Business Affairs at the University of Cincinnati, and as an International Account Manager for IBM Corporation.

Mr. Ullman currently serves on the boards of directors of Starbucks CorporationSBUX +0.55% , Saks Incorporated SKS +1.38% , and the COFRA Group headquartered in Zug, Switzerland, and as Deputy Chairman of the Federal Reserve Bank of Dallas. He is an advisor to the board of directors of the Retail Industry Leaders Association and is a past Chairman of the National Retail Federation. He is also Chairman of the Board of Mercy Ships International, a global medical and human services charity. He previously served as a director of Ralph Lauren Corporation; Taubman Centers, Inc.; LVMH Moet Hennessy Louis Vuitton; Federated Department Stores; and Segway, LLC.