J.C. Penney Co., Plano, TX, has retained investment banking firm Credit Suisse First Boston to explore strategic options for its Direct Marketing Services (DMS) subsidiary. The options include a sale of or joint venture involving the subsidiary. The decision reflects the company’s strategy to focus on its department store, catalog and Eckerd drugstore businesses. DMS markets insurance and other membership service offerings. During the past year the company sold its J.C. Penney credit card operations to GE Capital. The company said in a statement that it would use “any proceeds from a transaction involving DMS, along with the proceeds from the planned Eckerd tracking stock IPO, after that offering is completed, to further reduce the company’s debt and to buy back J.C. Penney company stock.” In other news, chairman James E. Oesterreicher, 58, plans to retire. A search for his replacement has begun and he will remain in his post until a successor is named.
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