Activist fund Barington Capital Group LP has initiated a proxy fight for seats on the board of apparel retailer Chico’s.
Barington has nominated two directors to join the company’s board, which has nine members.
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The activist investor nominated Macy’s former executive Janet Grove and Barington chief executive James Mitarotonda, reported The Wall Street Journal.
The activist fund owns a 1.4% stake in Chico’s. It is not seeking a change in leadership or sale of the business; but it believes that the costs need to be restricted by the retail chain.
Chico’s has begun addressing Barington’s concerns, reported the publication, citing people familiar with the situation.
Last December, Chico’s appointed Walmart executive Shelley Broader as CEO.
Broader realigned the digital and marketing operations of Chico’s, as well as handed over powers to take decisions at the brand level.
This move was expected to save $14m a year.
