Tuesday, August 9, 2016

Chico’s Resists Activist Investor, But Still Faces Challenges

Activist investor takeovers usually turn out differently than the recent scuffle between Barington Capital Group and Chico’s FAS.

The retailer, which owns the Chico’s, Soma, and Black House | White Market chains, has already spent the better part of the first half of 2016 laying out plans to improve the company’s performance and deliver more value to shareholders. Meanwhile, Barington Capital Group, which owns a 1.6 percent share of the company, launched a bid to gain two board seats in May. At the time, Barington claimed in a letter that Chico’s share price was down 77 percent from its all-time high in 2006. The company also claimed that the retailer needed to significantly reduce its corporate overhead and cut down on expenses, including advertising.. . . more

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