Saks Inc. (SKS) Chairman and Chief Executive Stephen Sadove will
join J.C. Penney Co.'s (JCP) board following the completion of
Saks' takeover by Hudson's Bay Co. (HBC.T), replacing current board
member Geraldine B. Laybourne, who is stepping down.
His appointment comes as two high-profile directors, William
Ackman and Steven Roth, the chief executive of Vornado Realty Trust
(VNO), have left Penney's board in recent months. The company was
expected to appoint a new director with retail experience as it
seeks help with its turnaround and to stem a steep slide in
sales.
Luxury retailer Saks disclosed last month that Mr. Sadove
planned to leave the company following its merger with Hudson's
Bay. The deal, initially valued at about $2.8 billion, is expected
to close by year's end. Mr. Sadove's election to Penney's board is
effective upon his leaving Saks.
"Under his leadership, Steve built luxury retail chain Saks
Fifth Avenue into one of the world's most prominent fashion
retailers today," said Penney Chairman Thomas Engibous. "He also
boasts a distinguished marketing and consumer products career
spanning over 25 years. Steve is an outstanding addition to our
board and we look forward to leveraging his expertise as we focus
on guiding the turnaround at J.C. Penney."
Mr. Sadove joined Saks' management team as vice chairman in
2002, assumed the additional post of chief operating officer in
2004 and became CEO in 2006. He took on the chairman title in 2007.
Penney noted that Mr. Sadove helped to elevate Saks' service
levels, differentiate its merchandise assortment, invest in
technology and investments in saks.com and strengthen its store
base.
Penney said Ms. Laybourne's departure from the board allows her
to focus more time as chairman of KANDU, a startup consumer
technology company for kids.
Penney is struggling to overcome a year-and-a-half under former
Chief Executive Ron Johnson. Mr. Johnson cut back discounts and did
away with some popular house brands without first testing the
moves, which drove away shoppers and plunged the company into the
red.
However, Penney on Tuesday reported improving sales trends in
September and said it's "making solid progress" in its turnaround
efforts, with its core customer reconnecting with the department
store, especially during promotional events.
Penney shares were up 1.9% to $7.92 in recent premarket trading.
Through Tuesday's close, the stock is down 61% since the start of
the year.
Write to Nathalie Tadena at nathalie.tadena@wsj.com
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