This Turnaround Is Turning Into a Disaster

Everyone on Wall Street and Main Street is watching to see whether department-store chain J.C. Penney can turn its business around. Once a thriving company, the chain is now struggling and losing money -- $80 million in such as Wal-Mart and Target and high-end department stores such as Nordstrom and Saks Fifth Avenue. That's why, last year, the company hired Apple executive Ron Johnson to right the ship.

So how's this turnaround going so far? Well, the show isn't over, but right now it's looking like a disaster. Q2 same-store sales were down 22%, and total sales were down 23%. But Johnson's latest move may prove even worse for this legendary retailer.

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Catherine Baab-Muguira and Lyons George have no positions in the stocks mentioned above. The Motley Fool owns shares of Apple. Motley Fool newsletter services recommend Apple. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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