Ron Johnson Out as JC Penney Chief, Former CEO Named Successor

Shares of JC Penney JCP is down approximately 8 percent  in Monday's after-hours trading session following a CNBC report Ron Johnson is stepping down as CEO of the retailer. Following the breaking news, the stock rallied as much as 12 percent higher before falling sharply.
JC Penney has since confirmed the report. The company announced former CEO Mike Ullman will return as Johnson's replacement. Ullman's role as CEO will be effective immediately.

JC Penney Chairman Thomas Engibous said, "We are fortunate to have someone with Mike's proven experience and leadership abilities to take the reins at the Company at this important time. He is well-positioned to quickly analyze the situation JC Penney faces and take steps to improve the Company's performance."

Johnson's role at the helm of the embattled retailer has been a heated topic for quite some time. Since the company disclosed in mid-June that Johnson, the man behind Apple's very successful retail strategy, would be in charge, shares of JC Penney have tumbled nearly 40 percent.

Johnson officially took control of the company on November 1st, 2011.