JC Penney tumbles as its CEO heads to Lowe's

Shares of JC Penney fell as much as 8% in early trading Tuesday after it was announced that CEO and chairman Marvin Ellison resigned and is headed to Lowe’s home improvement chain.

The embattled retail chain will be ran collectively by senior executives acting as an “office of the CEO,” until a new chief executive can be appointed, Bloomberg reported.

“As a 30-year industry veteran, Ellison brings significant leadership and operational expertise to Lowe’s, including experience managing a large network of stores and associates as well as insights and perspectives on managing global logistics networks,” Lowe’s said in a press release.

Ellison spent more than 12 years as an executive at Lowe’s competitor The Home Depot before joining JC Penney in 2014.

JC Penney’s stock price has declined by 35% since the beginning of the year as the chain struggles alongside many other brick-and-mortar retailers.

Shares of Lowe’s rose about 1.7% on the news.

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