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Engagged Capital is VF Corp. (New York Stock Exchange:VFC) The founding family has stepped up to fight the owners of brands like The North Face, Vans, and Timberland.
Engaged Capital, which owns 1.3% of VF (VFC), won. One person said it was sponsored by descendants of John Barbey, who founded VF in 1899. Reuters report On Sunday, he quoted Kelly Barbey. Members of the Barbey family currently jointly own approximately 15% of VF.
Kelly Barbey told Reuters the Barbay family wants to replace two directors on the 12-member VF board. The family is calling for the firing of Clarence Ortiz, who has been the manager since 2004, and Juliana Chugg, who has been the manager since 2009.
Engaged Capital has identified candidates with expertise in the retail sector and turnarounds as board candidates, Reuters reported, citing people familiar with the matter. The deadline to nominate directors is Tuesday.
The news comes after Engaged Capital first disclosed its stake in the apparel and footwear company in October. Engaged believes VF Corp (VFC) can achieve a stock price in the mid-$40s within three years. Copy of presentation Announced at the Activist Investor Conference.
Engaged is seeking VFC to make operational improvements, including cost savings that could amount to more than $300 million annually. The activist also wants the company to conduct a strategic review of its non-core assets and real estate, and possibly consider replacing its board of directors. Some of the brands VFC is considering expanding into include Timberland, Dickies, Supreme and Smartwool.
VFC announced a strategic review this month, with CEO Bracken Darrell giving no details on which brands might be in competition. He admitted that there are no sacred cows.
Activist Region Partners also owns a stake in VF Corporation (VFC) and wants the company to sell its Timberland and other brands.
