Perry Corp cuts stake in JC Penney
Perry Corp, a shareholder in JC Penney Co Inc, had cut its stake in the retailer. The stake of Perry Corp was reduced by more than half to 3.28%. This was according to a regulatory filing last Monday.
The hedge fund led by Richard Perry had reported a stake in the retailer of 8.62% as of August 30. This was according to a regulatory filing with the US Securities and Exchange Commission.
Since Friday, JC Penney's shares had fallen more than 15%. This was a day after the US department store chain announced issuing around USD1 billion in new shares to shore up its cash reserves. JC Penney said that the USd84 million shares were offered at USD9.65 per share piece. The retailer showed a sign of struggles after it had reported last August that sales at stores open at least a year slumped 11.9% in the previous quarter.
Aside from Perry Corp, hedge fund managers that included Larry Robbins of Glenview Capital Management and Kyle Bass of Hayman Capital Management had reduced their holdings in JC Penney. Hayman Capital reduced its stake by 5.2% while Glenview Capital lowered its stake by 9.1%, said a Reuters report.
At the close of trading on Monday, Penney shares were down at 2.5% to trade at USD8.82.