Management Turnover as Change Agent

Thursday, January 17, 2008

Target Undergoes Double Whammy in One Month

Target TGT (NYSE) seems to be having a tough month. First the company announces slower sales and anticipates slower sales going forward. This is all taking place while Pershing Square Capital, run by hedge fund activist William Ackman, amassed nearly 10% of the company's stock and continues place pressure on management. Then in early January, the company announces its long time and successful CEO, Bob Ulrich, will resign as CEO on May 1, 2008. Ulrich will remain chairman until the end of fiscal 2008. In his place, the company promoted Greg Steinhafel, the current president, to be the new CEO. Now comes news that well known creative designer Isaac Mizrahi, who has been so important in Target's success will be leaving Target to help revive Liz Claiborne. According to NPR's Marketplace,
The retailer apparently tried hard to keep the cheap-chic designer but wasn't willing to match Claiborne's offer.
Let's hope Steinhafel has something up his sleeve to help the company.

For more:

CNN Money (video)

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