The billionaire activist investor’s Pershing Square Capital Management said Friday that it had effectively boosted its stake in J.C. Penney Co. Inc.’s stock to 26.1 percent, the maximum allowed under an agreement reached with the retailer last month, through a series of “cash-settled total return swaps.” The swaps added exposure to 16.6 million “notional shares” to the 39.1 million, or 18.3 percent, that Pershing Square already held, driving Ackman’s holdings to just under 55.7 million shares.
The swaps were disclosed in a filing Friday with the Securities and Exchange Commission, which said Ackman’s firm had entered into them on Thursday “for the benefit of certain Pershing Square funds.”
As part of a deal with the retailer last month, Pershing Square agreed to limit its voting rights to 15 percent in the event that it boosted its stake and Penney’s amended a poison pill plan adopted last year to ward off further advances by Ackman after his firm acquired a 16.5 percent stake. Vornado Realty Trust, working in tandem with Pershing, picked up a 9.9 percent holding.
This month, a separate agreement limited Vornado Realty Trust’s “synthetic positions” to a maximum exposure of 15.4 percent. According to an SEC filing by the real estate firm last Monday, it hasn’t increased its stake beyond the 9.9 percent picked up last October.
Although Ackman and Vornado chairman Steven Roth have secured seats on Penney’s board, Ackman hasn’t quite been the firebrand presence that some had expected or that he’d proven to be following previous investments in Target Corp. and General Growth Properties. Still, he was said to be instrumental in the retailer’s selection in June of former Apple executive Ron Johnson as Penney’s next chief executive officer.
Penney’s shares closed ahead 15 cents, or 0.6 percent, at $25.53 following news of Ackman’s expanded stake. That’s 37.7 percent below their 52-week high of $41 but 10.5 percent better than the $23.11 he paid, on average, for his 18.3 percent shareholding. In mid-May, his paper profit stood at $700 million but as of Friday had fallen to $94.5 million.
@chanel and @pharrell dropped what’s being dubbed as the world’s most exclusive sneakers yesterday. The Adidas Originals NMD Hu, which Williams designed in collaboration with Chanel and @adidasoriginals, has a waiting list of over 120K people who pre-registered online at chanelatcolette.fr –– and only 500 pairs are on sale. The singer predicted the resale value of the shoes could reach $40K. Read the full interview on WWD.com. Link in bio. #wwdfashion (📷: Dominique Maître)
@imanshumpert is diving deeper into his creative endeavors and relaunching his clothing line, Post 90s, and is helping to raise money for the hurricane victims in St. Maarten with a jersey he’s designed with his brother. The Cleveland Cavaliers player talked to WWD about kneeling during the national anthem, working with fashion brands and how he wants to be more than an @nba player. Read the interview on WWD.com #wwdfashion (📷: George Chinese)
Not only does #TheProfit return to CNBC tonight, but @marcuslemonis has launched @shopmarcus, a new shopping and lifestyle retail experience in Aspen and Chicago, with more locations to come. The retail stores offer in-store stylists and a variety of contemporary womenswear selections.
“It’s life, I’m going to face it,” @mingxi11 sighed. “I fell, but you know, I think the most important thing is that I get back up. I had the love, the help from my sister — the girl next to me Gizele [Oliveira] — she’s so nice. When I went backstage everybody was trying to comfort me like ‘Oh Ming, it’s OK.’ I’m really, really touched. I think it’s them who gave me the courage to go back on stage for the finale,” Xi told WWD of her fall at the @victoriassecret fashion show. (📷: David Fisher) #wwdfashion #vsfashionshow #victoriassecret
@louisvuitton tapped @therealpeterlindbergh for its latest city-centric photo book, which is part of a series called Fashion Eye. The primarily black and white book captures the spirit of Berlin in 57 images shot between 1989 and 2019. “Berlin is an inspiration for me, more than a city. I mean @millajovovich is simply Berlin!” said Lindbergh. #wwdfashion
“You know, I think audiences expect a certain performance so I have to deliver to them what they’re expecting to a certain degree. But I’m also a different actor and a different person, I have my own spin on the character,” says @noahegalvin of his takeover of the leading role in “Dear Evan Hansen” following the departure of @bensplatt, who originated the role. Read WWD’s interview with the 23-year-old actor on WWD.com #wwdeye (📷: @jilliansollazzo)
For pre-fall 2018, @etro created richly-colored wonderland, using tapestries, textiles and wallpapers from the Eastern world at large. The line featured floral and graphic prints and jacquard motifs, like this two-piece look featured here. #wwdfashion (📷: Giovanna Pavesi)
@kith is moving into children’s. The men’s and women’s streetwear brand has launched Kidset, a Kith kids line located in New York at 64 Bleecker Street. The line includes mini versions of staple Kith pieces like the Astor bomber jacket and the Kith box logo sweatshirts, along with a wall that can display up to 120 pairs of shoes from @adidas, @newbalance, @timberland and more. #wwdfashion
“I just wanted to create this fully rounded character, but I do think what excited me most was just the opportunity to give a group of people representation that I feel needs it. I like to do characters in projects that stand for something and Karolina definitely does, so that was really exciting to me,” @ginnygardner says of her new role in @hulu’s “The Runaways.” Gardner plays Karolina Dean, a queer superhero, which is a rarity for @marvel. Read more about Gardner’s character on WWD.com #wwdeye (📷: @dandoperalski)