CFO Exit highlights the hunt for J.C. Penney's CEO

The company Plano, Texas, has no CEO since June 1, when Marvin Ellison left to take the helm at

Lowe's
Co

s.

At the time, J.C. Penney appointed a group of four leaders, known as the "Office of the CEO", to manage day-to-day operations. The release of Mr. Davis, who was also part of this group, brings this team back to two: Executive Vice President of the Supply Chain, Mike Robbins, and the Director of Information Technology and Information Technology. Chief Digital Officer, Therace Risch. Chief Customer Joe McFarland left in July to join Mr. Ellison at Lowe's.

J.C. Penney is under increasing pressure to fill the position of President and CEO, said Joel Bines, Partner and Co-Head of Distribution at AlixPartners LLP.

"They are in the danger zone and they need a leader who understands how to operate in the danger zone so that they can reorient themselves and have the time to understand what comes next in the retail business. "said Mr. Bines.

J.C. Penney has advanced his search for a new general manager, said a spokesman for the company in an email.

"The board is encouraged by the amount of interest it has received and expects a decision to approach," he said.

The retailer said Jerry Murray, the company's senior vice president of finance, will assume the role of interim chief financial officer. However, Murray will not join the CEO's office, the spokesman said in an email, adding that the two-person team would continue to operate at its current capacity.

The retailer must finalize his choice of CEO before he can turn to the position of Chief Financial Officer, said Peter Crist, President of the Crist | Kolder.

"You must have your CEO in your line of sight," said Mr. Crist. "If I'm a CEO candidate who looks at a troubled situation like J.C. Penney, I have a team in the lead, and I probably have a CFO who would come with me."

This kind of leadership dynamic often appears in business recovery situations and, therefore, would prevent potential candidates for the position of chief financial officer, said Mr. Crist.

"One can not expect someone who is good to be able to attend a CFO concert when he does not know who his partner is," he said.

And fulfilling the role of CFO will be a challenge to J.C. Penney. The new CFO needs to be in control of finance and operations, a strategic thinker, and knowledgeable about managing a range of stakeholders, from creditors to analysts to investors, "said Bines.

"The next Chief Financial Officer of J.C. Penney must be a Swiss Army Knife: extremely competent for a wide range of skills for CFOs, and that's a hard thing to find," said Mr. Bines.

Last month, J.C. Penney announced that net sales in its second quarter declined 7.5% to $ 2.76 billion. Comparable store sales revenue was up 0.3% for the period ending Aug. 4, missing the FactSet estimate of a 1% increase.

Write to Tatyana Shumsky at [email protected]