NEW YORK, June 7, 2021 /PRNewswire/ -- Barington Capital
Group, L.P. ("Barington"), which represents a group of shareholders
that collectively owns approximately 2% of Chico's FAS, Inc. (NYSE:
CHS) ("Chico's" or the "Company"), announced today that it has sent
a letter to the Executive Chair of the Board of Chico's
recommending the Company take a range of measures to improve
long-term shareholder value.
Barington believes the operating struggles at the Company's
fashion clothing brands, Chico's and White House Black Market, have
long overshadowed the positive contributions from Soma, the
Company's intimate apparel and loungewear brand. In Barington's
opinion, the Company's Board is largely responsible for this
underperformance, as it has failed to adequately refresh the
Board.
Soma has been performing strongly due to its compelling product
assortments and inclusive message. Based on recent peer valuations,
Barington believes Soma's value could exceed the Company's
enterprise value of approximately $640
million.
Barington sees promise in the new CEO's operating plan, which is
driven by digital-led retailing and improvements to merchandise
quality. Given the sizable cost reductions enacted by management
last year, Barington expects to see a return to profitability in FY
2021.
Barington is confident that there are multiple paths to enhance
value at Chico's, including (a) refreshing the Board with directors
that have relevant expertise in digital and women's fashion
specialty retailing, (b) expanding financial disclosure for each of
the Company's brands, (c) maximizing operating performance by
driving digital investments and maintaining cost discipline, and
(d) exploring strategic alternatives for the Company and its
brands.
Barington is confident that if the Company takes the steps
outlined above, it will create substantial long-term value for
shareholders.
The full text of the Barington's letter to the Company is
available at www.barington.com/chicos.html
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 significant
experience investing in consumer and retail and apparel companies
with prior investments in L Brands, Avon Products, Darden
Restaurants, The Children's Place, The Jones Group, Warnaco,
Collective Brands, Steve Madden and
others.
PLEASE SEE http://www.barington.com/chicos.html FOR
IMPORTANT DISCLOSURES CONCERNING BARINGTON'S LETTER.
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content:http://www.prnewswire.com/news-releases/barington-capital-group-calls-for-chicos-fas-inc-to-address-its-sustained-period-of-share-price-underperformance-301306669.html
SOURCE Barington Capital Group, L.P.