April 17 (Bloomberg) -- J.C. Penney Co. rehired Ken Mangone to head product design as Chief Executive Officer Myron Ullman works to stabilize the plunging sales caused by Ron Johnson’s failed overhaul of the department-store chain.
Mangone is returning as executive vice president of product development, design and sourcing, Daphne Avila, a spokeswoman, said in an e-mail. Mangone left Plano, Texas-based J.C. Penney in December having been at the company since 1999, according to his profile on Linkedin.
J.C. Penney ousted Johnson as CEO on April 8 and replaced him with his predecessor Ullman after annual sales slumped 25 percent to $13 billion, leading to a net loss of $985 million. So far Ullman has been focused on the company’s balance sheet. The retailer borrowed $850 million from its credit revolver and hired Blackstone Group LP to help raise at least $1 billion, people familiar with the situation said last week.
Meanwhile Nick Wooster, senior vice president of design and trends, has left the company, Avila said.
J.C. Penney dropped 2.8 percent to $14.77 at the close in New York. The shares have declined 25 percent this year, compared to an 8.8 percent gain for the Standard & Poor’s 500 Index.
The New York Post earlier reported the changes.
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