Perry Corp cuts stake in J.C. Penney by more than half

Mon Sep 30, 2013 7:17pm EDT

NEW YORK, Sept 30 (Reuters) - J.C. Penney Co Inc shareholder Perry Corp has cut its stake in the retailer by more than half to 3.28 percent, a regulatory filing showed Monday.

The hedge fund firm, run by Richard Perry, had earlier reported a stake of 8.62 percent as of Aug. 30, according to a filing with the U.S. Securities and Exchange Commission.

Shares of the U.S. department store chain have fallen more than 15 percent since Friday, the day after the company announced it was issuing almost $1 billion in new shares to shore up its cash reserves.

Penney said the 84 million shares in the offering had priced at $9.65 each.

The retailer, in a sign of how it is struggling, reported in August that sales at stores open at least a year fell 11.9 percent in the prior quarter.

In an earlier regulatory filing, Perry said he wanted Penney's board to replace its interim chief executive, Myron Ullman, with Ken Hicks, the chief executive of Foot Locker Inc .

Along with Perry Corp, hedge fund managers Kyle Bass of Hayman Capital Management and Larry Robbins of Glenview Capital Management have taken sizeable stakes in Penney of 5.2 percent and 9.1 percent, respectively.

Penney shares were down 2.5 percent to trade at $8.82 at the close of trading Monday.

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