THE WHAT? Third Point has sent a letter to Bath & Body Works pushing for a shareholder representative to be added to the US retailer’s Board of Directors.
THE DETAILS In an open letter to the firm formerly known as L Brands, Third Point threatened to pursue a proxy contest if its demands were ignored.
THE WHY? Bath & Body Works had hoped to appease the activist investor with the appointment of Lucy Brady to its Board of Directors but Third Point says that discussions have now stalled and its concerns have intensified. In the letter, sent to Global Cosmetics News, the hedge fund stated, “It seems as if this Board is operating in triage mode rather than via best corporate governance practices. We fear the reason that the Board is reacting this way is because they (and others) have many reasons to close the curtain before shareholders can take a closer look at what transpired on their watch.”