J.C. Penney Co. Inc. has changed its corporate structure to a holding company to provide it with more flexibility as it rebuilds its businesses.
As part of the new structure, the company has changed its name to J. C. Penney Corp. Inc. and has become a wholly-owned subsidiary of a newly formed affiliated holding company J. C. Penney Co. Inc.
“This structure, which is used by many companies with multiple businesses, creates a basic framework to facilitate organizational, operational, and strategic decision-making,” CEO Allen Questrom said in a statement. “This step will not result in any immediate changes to operations, but we believe that the new structure will provide us with more flexibility as we progress with the rebuilding of our businesses.”
This new structure will not alter a stockholder’s ownership interest in the business or result in a stockholder recognizing a gain or loss for federal income tax purposes. Shares of the holding company remain publicly traded under the same symbol “JCP” on the New York Stock Exchange.
The executive committee members and directors of the company will serve in identical capacities with the holding company. The business and operations of the company are otherwise unchanged.
In other news, J.C. Penney responded Friday to rumors of alleged Medicare fraud at its Eckerd drugstore chain that caused an 8% drop in its stock price. The firm released a statement that read: The company “has been made aware of a number of rumors circulating in the market. The company said these rumors are unfounded and without merit, and is unaware of any investigation or unannounced litigation.”
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