Einhorn’s Greenlight Closes JC Penney Short Position – Bloomberg

Greenlight Capital Inc. closed its
short position on retailer J.C. Penney Co. (JCP) in the second
quarter, founder David Einhorn said in a letter to investors.

“Our most profitable short of 2012,” the hedge-fund firm
covered its position when J.C. Penney’s board fired Chief
Executive Officer Ron Johnson “before he could turn the company
into a penney stock,” the hedge fund said in today’s letter, a
copy of which was obtained by Bloomberg News.

J.C. Penney, based in Plano, Texas, is trying to rebound
from a 25 percent drop in sales and a net loss of $985 million
last year under the Johnson’s leadership. He was replaced as CEO
by Myron Ullman in April. Ullman, who ran the chain from 2004 to
2011, initially focused on shoring up J.C. Penney’s finances
after returning. He borrowed $850 million from the company’s
credit line and secured a loan of $2.25 billion from Goldman
Sachs Group Inc.

To contact the reporter on this story:
Beth Jinks in New York at
bjinks1@bloomberg.net

To contact the editor responsible for this story:
Jeffrey McCracken at
jmccracken3@bloomberg.net