JCP Hopes Turnaround Begins on Slower Sales Decline

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Aug. 20 (Bloomberg) -- Bloomberg "Money Moves" anchor Deirdre Bolton reviews results from J.C. Penney as the retailer saw sales decline as a slower pace that last year, beginning progress on a turnaround. She speaks on Bloomberg Television's "In The Loop."

Leo hindery is "in the loop." great taste, less filling -- the european economy handed heineken some lemons.

They makes it into their beer.

From bloomberg world headquarters in new york, this is "in the loop" with betty liu.

Good morning.

It is tuesday, august 20. you are "in the loop." i am betty liu.

It is a big week for retailers.

Deirdre bolton is digging into jcp -- results lower than estimated.

Barnes & noble is out with their earnings in a half hour.

Alix steel has the latest on best buy's attempt to remodel their business with a little help from samsung.

Jcpenney is reporting the first full quarter under ceo mike ullman but they are facing the same old issues.

"money moves" deirdre bolton has been combing through the numbers.

I notice a big decline in comparable sales.

It is more or less what we heard from walmart and macy's -- american consumers are spending less.

That is happening at jcpenney as well.

There is a turnaround story.

Mike ullman is back , and he stated he is trying to undo the damage done by warmer ceo rod -- former ceo ron johnson.

At one point, people were not even in uniform.

Customers the not know where to pay, there were not enough cash registers -- basic things.

Mike ullman said they moved quickly to reestablish their business financially and operationally and there are no quick fixes.

You do have sales down, but if you're looking for a bright spot, sales fell more slowly than one year ago, bringing up the larger question of whether or not a turnaround is possible.

The resignation of bill ackman raises the question, does jcpenney have cash and time to hold this turnaround?

At the end of the quarter, they had about $1.5 billion.

Going forward, the company says the ceo says use of cash will drop in the second half.

They will go through it more slowly, which, if you do the takeaway, gives them a fighting chance.

You visited jcpenney's when they launched joe fresh.

Any hints for the back-to-school season?

Back-to-school is more important than the holidays, and this is one part of the strategy jcpenney is trying to keep -- the idea of a boutique within the larger store.

Joe fresh has been a big hit for them, california, surfer cool, and they are trying very hard.

Thank you, deirdre bolton.

Jcpenney might be known for their closing, but kyle bass is betting on a comeback.

Stephanie ruhle broke the story for us.

It is exclusive to bloomberg.

Why does carl bass want to get into jcpenney?

He does not need an extraordinary turnaround.

He needs the company to get their house in order.

He believes they can.

Who are the biggest investors -- take the names we have heard bill ackman.

But stephen ross, carl bass, amanda truly knows corporate turnarounds -- a man that truly knows corporate turnarounds -- people like that start to make you think jcpenney does not need to hit a home run.

Carl bass is not buying equity, just that.

-- debt.

It will be a big win for him.

When did he get in?

Two weeks ago.

He said if they need their apparel strategy straight, that might be underway.

They have enough access to capital.

By going long dead -- the debt, he can really win in a short amount of time.

Thank you, stephanie ruhle, "market makers" anchor.

Barnes & noble's reports there earnings in a half-hour, starting a new chapter after the ceo resigned.

Julie hyman has more.

What is barnes & noble go from here outside of the knock -- nook?

There is talk about a breakup.

Leonard riggio offered to buy the retail side of the business and take it private.

It is not clear what happens now that bill lynch is out, learned ratio is -- leonard riggio is in . nook media includes the college bookstore business.

Analysts will be looking for what is going on with the nook itself.

The company does not make nooks anymore, but could they announce a manufacturing partner, news on a breakup?

It is estimated the company losses will narrow overall, but the division between the two businesses, nook media and the retail business will be key.

Remember, barnes & noble's has tried to capitalize on the shift into digital e-reading.

At first, they did quite well.

This text has been automatically generated. It may not be 100% accurate.

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