Investor Bill Ackman has resigned from the J.C. Penney board according to Reuters.
"At this time, I believe that the addition of two new directors and my stepping down from the board is the most constructive way forward for J.C. Penney and all other parties involved," Ackman said in a statement released by the company on Tuesday.
Ackman also suggested the department store remove its chairman Thomas Engibous and temporary chief executive Myron Ullman Reuters reported.
According to Reuters, Ackman was involved in a conflict after he expressed his concern about where the company was going and how management was performing. J.C. Penney's shares decreased a third of their value rising to only four percent when "premarket" trading was done Reuters reported.
Ackman's firm, Pershing Square Capital Management, owns 18 percent of the retail store chain Reuters reported.
Ronald Tysoe, an expert in the retail business who served as vice chairman of Federated Department Stores Inc. which is now Macy's Inc. for 16 years, will join the board, Reuters reported.
J.C. Penney will also decide the direction it wants to go in shortly.
The trouble between the two parties increased last week when Ackman ordered for Engibous and Ullman to be removed from their posts Reuters reported. Ackman wanted another person in for Ullman in 30 to 45 days.
Pershing Square will be given more room to grow as it aims to promote its self within the company Reuters reported. It's not known what other investors plan to do if Ullman continues to serve in his position Reuters reported.
Financier George Soros's firm, Soros Fund Management LLC currently has 7.9 percent stake with the company Reuters reported. Investor Glenview Capital Management has 4 percent.
