J.C. Penney Co. formed a holding company, adopting a structure that analysts and investors say may help the operator of department stores and Eckerd drugstores provide a clearer picture of the performance of its units.
The new structure, effective Sunday, won't result in any immediate changes to operations, the firm said. The department store division will be called J.C. Penney Corp., and its former shares have been converted into stock for the holding company that will continue to trade under the symbol JCP, the firm said.
The structure may make it easier for J.C. Penney to execute changes such as spinning off Eckerd, analysts said. Eckerd now is combined with the department store business.
A holding company may enable J.C. Penney to establish separate financial reports, they said. J.C. Penney, which has lost money in six of the last 10 quarters, said the holding company format will provide more flexibility as it tries to rebuild. Shares of Plano, Texas-based J.C. Penney rose 60 cents to close at $24.30 on the New York Stock Exchange. They have fallen 9.7% this year.