Retailer J.C. Penney on Tuesday announced that Chairman and CEO Marvin R. Ellison has resigned from his position as the company has suffered a two-year decline in revenue. Ellison's decision comes as the company looked to turn things around as it lost $69 million last quarter.

J.C. Penney will reportedly replace him with four executives that will make decisions while it searches for new candidates for the position.

Ellison will stay on as director and CEO through June 1 but will immediately step down as chairman of the board, the company said in a statement. He is expected to take over at Lowe’s on July 2 for retiring CEO Richard Niblock.

"I want to thank Marvin for his many significant contributions to JCPenney over the past three years. During his tenure, the Company retired $1.4 billion in debt, renewed and enhanced its revolving credit facility and has significantly strengthened the Company's financial position," said current Lead Independent Director Ronald W. Tysoe who was elected Chairman of the Board.

"Additionally, he assembled a strong leadership team that will continue to serve the Company in an elevated capacity to ensure the entire organization remains focused on our customer and improving results. We thank Marvin for his leadership and dedication, and wish him much success in his next endeavor."

Ellison, 52, is a Tennessee native and has a Master’s in Business Administration from Emory University and a Bachelor’s Degree in Business Marketing from the University of Memphis. He is the middle child of seven siblings born to a working-class family.

He took over as J.C. Penney’s CEO in 2014 after his departure from a top executive position at Home Depot, which he held for 12 years. Ellison previously held a director position at Target for 15 years, according to his LinkedIn account. He is one of five African-American CEOs on the 2016 Fortune 500 list.

After Tuesday's announcement, shares of J.C. Penney’s plunged more than 12 percent. The company has struggled to find stability in the current retail landscape where consumers are steering away from shopping malls and making more purchases online. The company closed over 100 U.S. locations and cut 230 jobs this year.

Ellison is now tasked with helping Lowe’s compete with rival Home Depot. The home improvement retailer has also been losing market shares, which have only increased 9 percent as of Tuesday, CNN reported.

"Attracting Marvin is a great win for the entire Lowe’s team. Marvin is an experienced retail CEO with extensive expertise in a complex omni-channel consumer-facing company," Lowe's lead director Marshall O. Larsen said in a statement.

"He also brings significant experience in the home improvement industry, with a proven track record of global operational excellence and driving results from both DIY and Pro customers."

JC Penney
Marvin R. Ellison has stepped down as CEO of J.C. Penney. A woman is pictured walking toward an entrance of the retailer on May 3, 2005 in Niles, Illinois. Tim Boyle/Getty Images
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