CNBC's Scott Wapner reports that JCPenney is looking for a new CEO to replace interim chief executive Mike Ullman, according to letter from hedge fund manager Bill Ackman.
Ullman took over the helm again after Ron Johnson stepped down back in April.
What's more is Ackman writes that Allen Questrom, the former JCPenney CEO who was one of Johnson's most vocal critics, might be returning to the board as chairman if he approves of the new CEO, according to Wapner.
Ackman is the largest shareholder in JCPenney and he has a seat on the retailer's board.
His $12 billion Pershing Square Capital Management owns a 17.74% stake in JCPenney, according to the latest 13F regulatory filing for the fund.
Ackman, who has been a big cheerleader for the struggling retailer over the past couple of years, has taken a bath on the stock so far.
Shares of JCPenney are trading up more than 9% on that news.
Here's the chart:
