JCPenney CEO leaves for Lowe's

Posted May 22, 2018 8:40 a.m. EDT

— Lowe's has tapped JCPenney CEO Marvin Ellison as its new chief executive.

Ellison had been trying to lead a turnaround at JCPenney, but that has not been going well recently. It lost $69 million in the most recent quarter.

JCPenney will replace Ellison with an "office of the CEO" in which four executives will share day-to-day responsibility for running the company, while the company conducts a search for a new CEO.

Shares of JCPenney plunged 10% in pre-market trading immediately following the announcement. Shares of Lowe's climbed 3% on the news.

Ellison is currently one of only three black CEOs leading a Fortune 500 company.