Several analysts hailed former Joann chief Soltau's arrival in October, but the newness of her tenure is introducing a level of uncertainty that contributed to the retailer's downgrade Monday, Fitch said.
"As a result of recent operating weakness and new leadership, the company's near-term direction and strategy is unclear," Fitch said. "The prior management team [under Marvin Ellison] had made decisions over the past 24 months including getting into appliances and mattresses in order to take share away from some [of] its distressed peers. However, new management could decide on a different course for the company to stem sales and EBITDA declines.". . . more