JCPenney shares were surging today after rumours floated around Twitter that CEO Ron Johnson was leaving his post at the helm of the struggling retailer.The company ended up having to issue a statement about Johnson’s status at the company. It denied all the rumours in a statement to Bloomberg News:
“Ron Johnson is not quitting or resigning from J.C. Penney and he has no plans to do so,” a spokesman said. “The rumours are false.”
So, that’s that.
What started all these rumours?
It seemed to be spurred by earlier reports that the board was considering ousting Johnson after terrible numbers over the past year. Former JCPenney CEO Allen Questrom voiced his support for the removal of Johnson very publicly as well.
On top of all that, big investor Vornado Realty Trust announced that it was trying to dump a chunk of its stake, and JCPenney’s credit rating was downgraded by S&P.
“The mere fact that it had to shoot down the chatter is another bad sign for Johnson,” noted Tom Bemis at Marketwatch.
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