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That's the reward for failure in corporate America today that's what JC penny paid its former CEO Ron Johnson.
And his top three executives during that time the company also fired.
More than 40000 people it all started to really fall apart for JC Penney which ended what it called fake prices but what really drives sales.
Are inflated prices knocked down so shoppers think they're getting a great deal.
Now JC Penney has a new ad campaign they're admitting their mistake and begging shoppers to give them a second chance.
With -- now Kristen Benz the president of talented blonde -- welcome back to the show.
It takes a village to racquet company.
Ryan Johnson couldn't do it by himself.
So we were looking at the recruitment costs on some of these executives it's un believable -- Michael Francis the president.
Getting a twelve million cash bonus Michael Kramer -- -- -- -- getting four million bucks Dan Walker to CTO hitting an eight million signing bonus before these guys even did a little work.
They got all -- cash what does this tell you about the business.
How it tells me that the business is inherently flies.
And unfortunately you have to spend all this money to attract this you know so called talents.
To fix a broken company and look what you've gotten a process.
-- its and that's do you think this pool play apologizing.
Is gonna work.
No I think it's ridiculous I think it's a last ditch effort.
Honestly if Ron Johnson alleged would be apology a year ago and then rolled into the hole Ellen DeGeneres thing and then rolled into the oh by the way we're not gonna have -- -- coupon -- banks.
He might have had a prayer.
But I think it's just ridiculous now I -- it's laughable and and -- So sales are down five billion dollars I -- Unbelievable performance.
And they think you're going to be able to talk customers now -- -- using those coupons and coming back but that's a really tough turned to make isn't it.
Well the problem is now that you have Mike -- the old CEO of the captain into the problem that therein.
He's going to do a bunch of -- -- so you know pay no attention to the man behind the curtain Ron Johnson.
Not let's not you know do what he did let's do what I wanna do so it's gonna cost a ton of money.
And it's just ridiculous -- -- gonna go back to these old tried and true processes that got them into the graveyard there and right now on I just think it's a recipe for disaster.
I think you know you gotta ask yourself where is the board and all of this unbelievable.
Quickly deal news is saying that JC Penney -- been jacking up prices as much as 67%.
On some items surprising.
No not at all I mean this there's blood in the water and they have to make a profit they brought -- all these brands.
And now they're getting pushed back from the -- fractures of the world he came -- and -- -- -- by -- gonna promote me what happened.
At all these concessions so of course that does not surprise me in the least back.
We're showing yeah Jonathan Adler table that got marked way.
And of course we're seeing the coupons are ready they're out there for ten bucks up fifteen -- stopped when he -- off.
You know I guess we'll have to wait and see if this strategy strategy really plays -- Kristen thanks for coming not always good to see.
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