The hedge fund that formerly had been the largest shareholder in JCPenney (JCP) has sold all of its shares in the retailer — yet another hit to the floundering company.
Bill Ackman’s Pershing Square sold the stock just two weeks after Ackman left the board over a leadership dispute.
The hedge fund … own[ed] 39.1 million shares, or 18 percent of shares outstanding. Ackman’s fund bought the shares at about $25, which means it stands to lose about $470 million, or about half of his initial investment.
… Following the report, J.C. Penney shares dropped about 5 percent in after-hours trade before paring some losses.
Recently, tensions have been high between Ackman and the board, which clashed over the retailer’s future and a search to replace its CEO.
JCP has been up against a spate of financial challenges, most recently this past spring laying off some 2,200 workers while facing dismal quarterly losses.