PLANO, Texas - January 24, 2011 - J.C. Penney Co. is closing some stores, outlets and call center locations and continuing to work on an exit from its catalog business in an effort to streamline operations and boost profits.

The department store operator also said Monday that Vornado Realty Trust Chairman Steven Roth and activist investor William Ackman will become board members. Penney's enacted a "poison pill" in October after both Ackman and Vornado took large stakes in the company.

Ackman and his hedge fund Pershing Square Management have pushed for major changes at retailers he holds stakes in, such as Borders Group, Inc. and Target Corp.

In pre-market trading Monday, J.C. Penney shares jumped 3.5%, or $1.05, to $31.39.

In an interview on CNBC, Ackman said J.C. Penney is a great company and a great brand, but could be a better retailer. He noted that the company has had success with its Sephora boutiques, but that sales per square foot over the past 10 years have not made progress and margins are off.

Penney reported in November that its gross profit margin slipped to 39% from 40.6% in the third quarter due to heavy discounting and the discontinuation of its big catalog.