Ackman, Roth Named to Penney’s Board

NEW YORK CITY-Two of New York’s heaviest hitters in commercial real estate are likely to join the board of JCPenney by the time the Plano, TX-based retailer holds its next directors meeting in February. William Ackman, CEO of Pershing Square Capital Management, and chairman Steven Roth of Vornado Realty Trust have been named to the board three months after Ackman became Penney’s biggest shareholder.

Between them, Ackman and Roth’s companies own more than 25% of Penney’s stock, a fact noted in a release from the retailer on Monday. Additionally, according to the release, Ackman and Roth “have expertise in areas of relevance to JCPenney’s business,” while Penney CEO Myron Ullman says in a statement that the two “share our passion for operational excellence and are committed to enhancing value for all of the company’s shareholders. We look forward to benefitting from their expertise.”

Ackman’s other retail stocks include Target Corp. and Borders Group Inc. He’s also chairman of the Howard Hughes Corp., which was spun off from General Growth Properties as it emerged from bankruptcy.

Along with an extensive portfolio of retail space, Vornado also is part owner of national chain Toys ‘R’ Us. Roth is also chairman and CEO of Alexander’s Inc., a REIT that grew out of the former department-store chain, and managing general partner at Interstate Properties.

The move will increase the size of the retailer’s board to 13. Penney said Monday an additional board member would be named in the near future.

This past October, Pershing Square disclosed in regulatory filings that it held about 39 million shares of Penney’s common stock, or 16.5%. Vornado disclosed a stake of approximately 9.5%.

Separately, Penney announced on Monday that it plans to close six full-line stores as well as 19 outlet centers. It will also consolidate its call centers and wind down its catalog business.