J.C. Penney CFO Ken Hannah Exits, Ed Record To Succeed - Update

(RTTNews) - Struggling department chain J.C. Penney Co. Inc. (JCP) Thursday announced the exit of its Chief Financial Officer Ken Hannah, who is being replaced by retail veteran Ed Record, effective March 24.

The company did not divulge the reasons for Hannah's exit but said that he will continue on an interim basis to ensure a smooth transition.

Ed Record, who also has been named executive vice president of the company, will report to Chief Executive Myron (Mike) Ullman, III.

Record's understanding of retail finance and operations as well as his extensive department store experience, makes him an ideal candidate, said Ullman in a statement.

Record has nearly 25 years of experience managing the financial and operational performance of various retailers. He spent over six years at Stage Stores, a Houston, Texas-based retailer, in operational and financial roles. Prior to that, Record served as senior vice president of finance at Kohl's.

Outgoing CFO Hannah joined J.C. Penney in May 2012 under the then CEO Ron Johnson. Johnson resigned after he failed to turnaround the company and in April, Mike Ullman returned to the top position at the company.

Mike Ullman faces stiff challenges in reviving the company. In mid-January, J.C. Penney announced plans to close 33 under-performing stores and lay off 2,000 employees.

Earlier this month, the Plano, Texas-based company reported a rise in sales during the holiday season with its first quarterly comps increase since 2011, partly reflecting the success of its turnaround strategy.

Retailers overall had a tough holiday season. Last month, retail giant Wal-Mart Stores Inc. (WMT) said it will lay off about 2,300 employees at its Sam's Club warehouse division. Target Inc. (TGT) has said it plans to close eight U.S. stores in May.

J.C. Penney stock is trading at $5.95, down $0.01 or 0.25%, on a volume of 6.6 million shares on the NYSE.