Struggling retailer, J. C. Penney has said that it will sell around 84 million shares of common stock in a public offering in an attempt to build up its cash reserves.

The company has said that it will use the funds raised from the offering for meeting general corporate expenses. The company has also granted its underwriter, Goldman Sachs a 30 day period to buy up to 12.6 million more shares in case it records excess demand. According to the closing price of $10.42 for J. C. Penney shares on Thursday, the issue would raise about $1 billion. However, the shares fell 4 per cent to $10 in the after trading following the announcement.

Billionaire hedge fund manager, William Ackman had said that he is planning to sell his holdings in retailer, J. C. Penney after recently leaving the board over differences. Ackman's Pershing Square Capital Management said that it is planning to sell its 39.1 million shares in J. C. Penney concluding its efforts to record a profitable investment in the retailer. Ackman's Pershing Square hedge fund has been the biggest shareholder in the company with an 18 per cent stake in the company.

In another development, Penney said in a filing with the Securities and Exchange Commission that that its senior vice president and controller, Mark R. Sweeney has left the company.