Edward Record has been appointed executive vice president and chief financial officer of J.C. Penney Co. Inc., effective March 24.
Record, most recently chief operating officer of Houston-based Stage Stores Inc., will report to Myron “Mike” Ullman 3rd, chief executive officer of Penney, and join the Plano, Tex.-based retailer’s executive board.
He succeeds Ken Hannah, a veteran of Home Depot and General Electric who came to Penney in May 2012 from MEMC Electronic Materials. He was part of the team assembled by then chief operating officer Michael Kramer during Ron Johnson’s tenure as ceo, which ended in April. Kramer left the same month.
Record has been with Stage for six years and was cfo before becoming chief operating officer four years ago. Prior to Stage, he was with Kohl’s Corp. as senior vice president of finance and Belk Inc. as senior vice president of finance and controller. Earlier in his career, he was with Federated Department Stores.
“Ed is a highly accomplished executive with a broad understanding of retail finance and operations,” Ullman said. “His extensive department store experience and track record of success make him an ideal candidate as we continue to advance our turnaround.”
Wells Fargo analyst Paul Lejuez noted that Record’s hiring indicates that Penney’s was not in the market for a restructuring expert. Still, he believes Penney’s “will need to access the capital markets” for between $400 million and $500 million and continues to expect the retailer to burn between $1.3 billion and $1.5 billion in cash out of its current liquidity of more than $2 billion in the next three quarters. Penney’s turned to the public markets to raise about $932 million in cash through a secondary stock offering in September.
“Today’s news, coupled with last week’s announcement to develop in a [joint venture] arrangement, rather than sell, 240 acres of land surrounding its Plano, Tex., headquarters, tells us JCP management is not in panic mode as far as raising capital,” he wrote in a research note. “Nor are they preparing for a restructuring.”
Penney’s will report fourth-quarter and full-year financial results on Feb. 26. Shares Thursday rose 0.5 percent to close at $5.99.
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