JC Penney Hit By New Credit Downgrade
Morning Business Memo:
Everyday pricing at JC Penney may be a disaster, turning off shoppers used to frequent sales. Standard & Poor's Ratings Services is lowering its credit rating on the department store operator. This moves Penney further into junk status, with S&P saying the chain's performance remains weak. Concerns are growing about the firm's ability to turn its business around. Penney posted a bigger-than-expected loss and a 20 percent drop in revenue in the first quarter as shoppers were turned off by a new pricing plan that eliminates hundreds of sales in favor of lower everyday prices. The changes were put in place by a new CEO - former Apple retailing whiz Ron Johnson. He overhauled every aspect of JC Penney's business from pricing to the brands it carries. Analysts expect that the business remains challenging in the current quarter.
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DirectTV has pulled the plug on Viacom Channels, including MTV Nikelodeon and Comedy Central. Direct TV subscribers are caught in the middle of a dispute between the satellite provider and Viacom over how much money is being paid to carry programming.
Richard Davies Business Correspondent ABC NEWS Radio twitter.com/daviesabc