605. Reporting that one of its many problems had been the recent extended sales slump in women’s apparel, the seven-store retailer said it would start a three-month liquidation sale in all of its stores.

(A) its many problems had been the recent

(B) its many problems has been the recently

(C) its many problems is the recently

(D) their many problems is the recent

(E) their many problems had been the recent

A is the answer. But why "recent" instead of "recently"should be chosen to use here?

D and E can be excluded due to improper pronun "their".

B and C used wrong tense compared to "said".