J.C. Penney (NYSE: JCP) said Tuesday that Jill Soltau, the former CEO of Joann Stores, will take the helm of the struggling department store chain.
Soltau will fill the position Oct. 15 and will also become a member of the retailer's board of directors. The news comes after the departure of Marvin Ellison, who now serves as CEO of home improvement retailer Lowe's (NYSE: LOW). Penney has been searching for Ellison's replacement since he abruptly announced his exit in May. The department store chain also lost its CFO, Jeffrey Davis, earlier this week.
While the department store sector in the U.S. is under increasing pressure as shoppers' purchases shift online, Penney has struggled more than some of its peers, including Macy's (NYSE: M) and Nordstrom (NYSE: JWN).
In the latest quarter ended Aug. 4, Penney lowered its outlook for the full year, as it continued to grapple with an overhang of too much inventory.
Soltau comes to Penney at a crucial time — ahead of the all-important holiday season. The company has had a hard time keeping inventory levels low, as unsold and outdated merchandise has piled up in stores.
When Ellison left, the retailer's board assured shareholders it would find someone with merchandise experience to fill the CEO role.
Penney shares have fallen more than 50% this year to trade around $1.70. The retailer has a market cap of about $491.2 million. The shares shed a penny Wednesday morning to $1.56
