NEW YORK, June 14, 2016 /PRNewswire/ -- The Barington
Group, which collectively beneficially owns more than 1.5% of the
outstanding shares of common stock of Chico's FAS, Inc. (NYSE:
CHS), announced today that it has filed a definitive proxy
statement and accompanying BLUE proxy card with the Securities and
Exchange Commission ("SEC") in connection with its solicitation of
proxies to elect its highly qualified nominees to the Chico's
Board. The Barington Group also announced that it has mailed
a letter to the stockholders of Chico's highlighting its serious
concerns with the Company and outlining the Barington Group's
comprehensive plan to unlock the Company's long-term value
potential. The Barington Group's letter is available on the
SEC's website and can be viewed by clicking the following link:
http://tinyurl.com/glbt46c.
In the letter, the Barington Group highlights the reasons for
its proxy solicitation, which include the Company's extremely
disappointing performance and poor executive compensation practices
under its current Board of Directors:
- The Company's common stock has significantly underperformed its
peers and the market as a whole over the past 1, 3, 5 and 10-year
periods. The Company's stock is down over 30% over the past
12 months and has fallen approximately 78% from its all-time high
of $48.90 in February 2006, wiping out almost $5 billion in market capitalization.
- Chico's has suffered from declining comparable store sales and
disproportionately high SG&A expenses. It has also
suffered over a $200 million loss
associated with the Company's disastrous acquisition of Boston
Proper.
- The Barington Group believes that Chico's has failed to
properly align CEO pay with performance, as the Board awarded
CEO Shelley Broader a compensation
package that is almost twice the size of the median compensation
paid to the CEOs of the Company's peers in 2015.
- The Board has nominated Bonnie
Brooks, the Vice Chairman of Hudson's Bay Company, which owns and operates
two sizable department store chains that directly compete with the
Company. If Ms. Brooks is elected at the 2016 Annual Meeting,
her service on the Chico's Board would create a conflict of
interest, if not a potential violation of antitrust law.
The Barington Group states in the letter that while it
recognizes that Chico's has announced that it is implementing some
of the suggestions it has made, the Barington Group believes that
the measures that have been announced are insufficient and outlines
a comprehensive plan to help unlock the Company's long-term value
potential.
The Barington Group has launched a website,
www.barington.com/chicos.html, dedicated to the election of its two
highly qualified shareholder representatives to the Chico's Board
at the Company's upcoming 2016 Annual Meeting. The Barington
Group's nominees are:
James
A. Mitarotonda – Mr. Mitarotonda, 62, is the Chairman
and Chief Executive Officer of Barington Capital Group, L.P.
Mr. Mitarotonda is an experienced public company director who has
served on more than a dozen boards and has helped numerous public
companies improve their long-term financial performance, corporate
governance and executive compensation practices. He is
currently a director of A. Schulman, OMNOVA Solutions, Inc., The
Eastern Company and Barington/Hilco Acquisition Corp. He has
also served as a director of The Jones Group, Ameron International,
Griffon Corporation, Gerber Scientific, Register.com, Inc. and The
Pep Boys – Manny, Moe & Jack, among other companies.
Janet
E. Grove – Ms. Grove, 65, has over 40 years of retail
industry experience, including serving as Vice Chairman of Macy's,
Inc., a leading department store chain, and as Chairman and Chief
Executive Officer of Macy's Merchandising Group, where she was
responsible for designing, sourcing, marketing and merchandising
Macy's private branded products and managing key vendor
relationships.
If you have any questions or need assistance in voting the
Barington Group's BLUE proxy card, please contact the
Barington Group's proxy solicitor, Okapi Partners LLC.
OKAPI PARTNERS LLC
1212 Avenue of the Americas, 24th Floor
New York, NY 10036
(212) 297-0720
Stockholders Call Toll-Free at: (877) 566-1922
E-mail:
info@okapipartners.com
About Barington Capital Group, L.P.:
Barington Capital Group, L.P. is a fundamental, value-oriented
activist investment firm that was established by James A. Mitarotonda in January 2000.
Barington invests in undervalued publicly traded companies that
Barington believes can appreciate significantly in value as a
result of a change in corporate strategy or improvements in
operations, capital allocation or corporate governance.
Barington's investment team, advisors and network of industry
experts draw upon their extensive strategic, operating and
boardroom experience to assist companies in designing and
implementing initiatives to improve long-term shareholder
value. Barington has substantial experience investing in
retail and other consumer-focused companies, with prior investments
in Dillard's, The Children's Place, The Jones Group, Warnaco,
Nautica, Steve Madden, Payless
ShoeSource, Stride Rite, Collective Brands, Maxwell Shoe, Avon Products, Lone Star
Steakhouse, Darden Restaurants and Harry
Winston, among others.
CONTACTS:
Jared L. Landaw
Chief Operating Officer
Barington Capital Group, L.P.
Email: jlandaw@barington.com
Tel: (212) 974-5713
Okapi Partners LLC
Email: info@okapipartners.com
Tel: (212) 297-0720
(877) 566-1922 (toll-free)
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/barington-group-files-definitive-proxy-statement-and-mails-letter-to-the-stockholders-of-chicos-fas-inc-300284088.html
SOURCE Barington Capital Group, L.P.