George Soros has given ailing J.C. Penney a big vote of confidence.
The hedge fund mogul revealed a 7.9% stake in the retailer on Thursday. The investment is worth nearly $265 million at Thursday's closing price of $15.24.
Soros is now the fourth-largest shareholder in the company, according to Bloomberg, and has taken a passive stake.
J.C. Penney ( shares surged on the news in after-hours trading, rising more than 7%. The rally continued Friday, with shares jumping nearly 9% in premarket trading. )
Soros joins fellow hedge-fund celebrity Bill Ackman as one of J.C. Penney's major shareholders.
Earlier this month, the troubled retailer announced that CEO Ron Johnson was leaving the company after just a year and a half.
Johnson, a former Apple ( executive, had instituted ambitious changes to J.C. Penney stores in an attempt to remake the brand. Sales plummeted during his tenure, sinking 28% in the fourth quarter from a year earlier. )
J.C. Penney tapped Mike Ullman, Johnson's predecessor as CEO, to take the reins once more. The company has since consulted with investment firm Blackstone in an attempt to raise up to $1 billion and remain solvent.