Investors eye changes to Dillard’s board of directors
Jerry Epperson -- Furniture Today, March 5, 2008
New York – Two investment funds that together own about 3.7 million shares, or 5.3%, of the 71.2 million outstanding shares of department store operator Dillard’s Inc., have announced that they are considering putting up candidates for election to the Dillard’s board of directors at the company’s next annual meeting.
Barington Companies Equity Partners and Clinton Multistrategy Master Fund sent a Feb. 29 demand letter to Dillard’s that, according to their filing with the Securities and Exchange Commission, comprises an “inspection of books and records” request in which they seek full access to stockholder lists and organizational documents.
The investors demanded the documents by this Friday, March 7.
In August 2007, Barington founder and chairman James Mitarotonda had characterized Dillard’s shares as “significantly undervalued” and said of the situation: “The status quo is not acceptable.” He requested a meeting with chairman and ceo William Dillard, which management declined.
The Little Rock, Ark.-based retailer reported 2007 sales of $7.2 billion, down 5.6% from $7.7 billion a year earlier; comps fell 5.0% in the period.
Dillard’s is No.37 on the HTT Top 50 Retailing Giants list, with 2006 home textiles sales of $117 million.
Furniture Today's Ray Allegrezza Speaks with Stephen Bogart about Fine Furniture's New Bogart Line