Forbes- Two prominent hedge fund managers owning a 5.3 percent stake in Dillard’s Inc Tuesday demanded the retailer run its business better to help boost its long-sinking share price.
James Mitarotonda, who heads hedge fund Barington Capital Group, and hedge fund Clinton Group Inc’s Michael Popson, in a letter to Dillard’s board of directors, said the company must manage its inventory better, close underperforming stores, and sell properties or sell and lease back some stores.
"We are committed to taking all actions necessary to enhance shareholder value," the fund executives wrote in the letter, which was filed with the U.S. Securities and Exchange Commission.
The two hedge funds were especially concerned about Dillard’s plunging share price. Since Barington first began pushing Dillard’s to make changes last summer, the price has tumbled 52 percent, more than the benchmark Standard & Poor’s Retail Index which has fallen 23 percent.
