J.C. Penney Plunges to Historic Low

plunged 27 percent to a historic low after forecasting a surprise loss for the year amid clearance sales to get rid of a pile-up in unsold items.

The struggling department-store chain, which has been without a chief executive since May, also posted a wider-than-expected loss for the quarter ended Aug. 4, and disappointing same-store sales, a closely-watched measure for retailers.

The dismal sets of results will increase the urgency to find a new leader who can tackle a turnaround. The price cutting was drastic last quarter, as the retailer offered discounts on more than the usual seasonal products or unwanted fashion items. By reducing the inventory, however, J.C. Penney may make itself more attractive for an incoming CEO looking for a fresh start.

The shares, which had already lost 35 percent in the past year, fell to $1.76 on Thursday, the lowest since at least 1980, according to data compiled by Bloomberg.