The company announced on Tuesday that activist investor Bill Ackman is stepping down from its board of directors. Through his Pershing Square Capital Management, Ackman controls an 18% stake in the discount department store chain, Reuters notes.
Ackman’s resignation caps a three year struggle between the hedge fund manager and company management to force JCPenney to drastically alter its strategy. Just last week, Ackman demanded that the company’s chairman and current CEO be replaced.
Earlier this year, JCPenney ousted CEO Ron Johnson, after his “no sales” strategy bombed with customers and the chain saw a series of disastrous quarterly losses.
JCPenney’s current CEO Myron Ullman will remain in place until a permanent successor to Johnson is located.
With Ackman stepping aside, the company said that former Macy‘s (M) executive Ronald Tysoe has been appointed to the board. A second new board member will be named soon.
Shares of JCPenney rose almost 3% in Tuesday morning trading.