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Enter private equity. Hopefully.
Ron Johnson is out at J.C. Penney Co. Inc.. The board, which is reinstating the man that Mr. Johnson replaced just 16 months ago, may hope that his tenure as chief executive at the mid-market department store will be forgotten by history. But that is unlikely. Last year sales fell 25 per cent, and the company burnt more than $800-million (U.S.) of cash. Mr. Johnson’s strategy of “stores within a store” and limited discounts gained no traction, and the golden Martha Stewart may be forced from the stores, as litigation between J.C. Penney and Macy’s continues.