A group of activist investors targeting Perry Ellis
International Inc. have agreed to withdraw their board nominees
after the retailer committed to shaking up its chief executive role
and board last week.
Perry Ellis has come under fire from Legion Partners Asset
Management LLC, a California investment fund, and the California
State Teachers' Retirement System, or Calstrs.
The activist hedge fund and pension fund own a combined 6.3%
stake in Perry Ellis and have been pushing publicly for changes at
the company since last July, focusing on the family that runs
it.
Earlier this month, the group launched a proxy fight for three
seats on the fashion company's board.
Last week, Perry Ellis said founder George Feldenkreis plans to
step down as chief executive when his contract expires early next
year, while naming his son, Chief Operating Officer Oscar
Feldenkreis, as his successor. The succession plan also included
the planned retirements of two directors.
The company nominated former PVH Corp. CEO Bruce J. Klatsky,
former CEO of Tween Brands Inc. Michael W. Rayden and Oscar
Feldenkreis for election to the board—moves which the
activist group cheered on Tuesday.
"We believe their relevant experience and record of building
value at other companies will bring positive change to the
boardroom," said Chris Kiper, managing director of Legion
Partners.
Though the group has withdrawn its slate of board nominees,
Calstrs' proposal to declassify the board will still go to a vote
at the annual meeting.
Write to Chelsey Dulaney at Chelsey.Dulaney@wsj.com
Access Investor Kit for Perry Ellis International, Inc.
Visit
http://www.companyspotlight.com/partner?cp_code=P479&isin=US2888531041
Access Investor Kit for PVH Corp.
Visit
http://www.companyspotlight.com/partner?cp_code=P479&isin=US6936561009
Subscribe to WSJ: http://online.wsj.com?mod=djnwires