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He was no Steve Jobs, and now he’s out of a job.
Ron Johnson — the former Apple exec whose disastrous, 17-month stint at the helm of JCPenney sent the aging department store into a tailspin — was booted from the company late yesterday.
News of Johnson’s ouster briefly sent Penney’s battered shares soaring in after-market trading, as hopes rose that the retailer’s board had reached a plan to stanch the bleeding from Johnson’s botched turnaround bid.
But in what looked like an act of desperation, Penney’s board replaced Johnson with the company’s previous CEO, Mike Ullman, an industry veteran whose performance had been blasted by critics including hedge-fund tycoon Bill Ackman, Penney’s largest shareholder.
“It’s an awkward situation to say the least,” said one company insider. “Ackman is looking pretty foolish, as he is the guy who was beating the drum to get rid of Ullman in the first place.”
After Penney announced the return of 66-year-old Ullman, the retailer’s shares backtracked and plunged as much as 10 percent in after-hours trading.
Ackman didn’t respond to a request for comment.
“Mike was certainly not doing that well in the last three or four years of his tenure,” said former Penney CEO Allen Questrom, a retail legend who is widely credited with the retailer’s turnaround between 1999 and 2004.
Ullman, who took the reins from Questrom in 2004, was pilloried for his failed collaboration with Ralph Lauren to produce an exclusive line of clothing and home goods called “American Living.” The label, which Penney shoppers found pricey, languished on sales racks as Lauren refused to put his name on it.
In a statement, Penney said Ullman “is well-positioned to quickly analyze the situation JCPenney faces and take steps to improve the company’s performance.”
Sources expect Ullman will slash capital spending to save cash, putting a lid on Johnson’s costly rollout of in-store shops for new fashion brands like Betsey Johnson and Nanette Lepore.
Ullman is likewise expected to quickly restore coupons and splashy sales events to win back customers who fled after Johnson abruptly switched Penney to a flat pricing strategy early last year.
There’s plenty of room for improvement, as Johnson’s moves spurred a 25-percent sales drop last year, fueling a $985 million loss.
Questrom, however, said Ullman won’t likely lead Penney to prosperity.
“You need somebody who has been a CEO, but somebody who’s been very successful as a CEO,” he said.
Questrom said he wasn’t approached about the job and wouldn’t have accepted it anyway.