Barington Capital Drops Proxy Fight at Chico's
July 15 2016 - 11:30AM
Dow Jones News
Activist investor Barington Capital Group LP said Friday it is
dropping its fight for board seats at apparel chain Chico's FAS
Inc., and took credit for recent changes at the retailer nearly two
months after it launched its proxy campaign.
Barington, which owns a 1.4% stake in Chico's, said it would
drop its bid after proxy advisory firms Institutional Shareholder
Services and Glass Lewis agreed with Chico's that the
recently-appointed chief executive, Shelley Broader, should be
given time to drive profitable growth.
"For the past several months, we have worked tirelessly to
ensure that positive changes are made at Chico's," said James A.
Mitarotonda, chairman and CEO of Barington. "Our efforts have
undoubtedly increased the pressure on the board and management to
address the issues we have raised and to deliver actual results to
shareholders."
Chico's recently has announced more than $50 million in cost
cuts and the replacement of two directors on its board, among other
changes. A representative for Chico's couldn't be reached for
comment.
Barington said it still would like to see Chico's decentralize
the company's "large corporate infrastructure," further cut
expenses and improve executive compensation practices.
In May, the company reported earnings and revenue in its latest
quarter missed Wall Street's expectations.
Chico's stock rose 1% to $11.67 in morning trading in New
York.
Write to Joshua Jamerson at joshua.jamerson@wsj.com
(END) Dow Jones Newswires
July 15, 2016 11:15 ET (15:15 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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