Engaged Capital has gained the help of V.F. Corp.’s (NYSE:VFC) founding household in its battle with the proprietor of manufacturers similar to North Face, Vans, and Timberland.
Engaged Capital, which has a 1.3% stake in VF (VFC), has gained the help of descendants of John Barbey, who based VF in 1899, in keeping with a Reuters report on Sunday, which cited Kelly Barbey. The Barbey members of the family now collectively personal about 15% of VF.
The Barbey household desires two administrators on VF’s 12-member board changed, Kelly Barbey informed Reuters. The household desires Clarence Otis, a director since 2004, and Juliana Chugg, a director since 2009, eliminated.
Engaged Capital has recognized folks with retail sector and turnaround experience to function director candidates, in keeping with Reuters, which cited sources conversant in the matter. The deadline to appoint administrators is on Tuesday.
The information comes after Engaged Capital first disclosed a stake within the attire and footwear firm in October. Engaged believes V.F. Corp (VFC) can understand a mid-$40 share value inside three years, in keeping with a replica of a presentation offered at an activist investor convention.
Engaged is searching for VFC to make operational enhancements, together with chopping prices which may be value greater than $300 million a 12 months. The activist additionally desires the corporate to conduct a strategic overview of its noncore property and actual property and probably look to refresh its board. Some manufacturers VFC might look to unload embody Timberland, Dickies, Supreme, and Smartwool.
VFC (VFC) introduced this month a strategic overview and CEO Bracken Darrell didn’t present specifics as to which manufacturers could possibly be on the chopping block, however he did affirm that there are “no sacred cows.”
Activist Legion Partners additionally has a stake in VF Corp. (VFC) and desires the corporate to divest manufacturers similar to Timberland.