JC Penney (JCP) was founded in 1902 and has become one of the major retailers, operating 1,102 department stores in 49 states. The company sells apparel and footwear (50% of revenue), accessories, fine and fashion jewelry, beauty products (through Sephora) and home furnishings. In addition, the department stores provide customers with services such as a styling salon, optical, portrait photography and custom decorating. In 2011 the company recorded sales of $17.3 billion.

JC Penney has not been performing well. Earnings per share decreased from a high of $4.93 in 2007 to a net loss of $0.70 in 2011. Gross margins decreased from 40% to 36%, and sales per gross square foot decreased from $177 to $154. The latest quarter was very disappointing, with a net loss of $0.75 a share and an elimination of the dividend. Investors reacted immediately and the stock price dropped to a low of $19 (52-week high of $43). The stock price has recovered some of its lost ground, and is currently trading at around $28.

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