Activist Barington Takes Stake in Bath & Body Works, Pushes for Sale
BBWI sits 26% above its 52-week low of $14.275.
Summary
Activist investor Barington Capital has taken a stake in Bath & Body Works and is pushing the retailer to explore a sale, according to a Bloomberg report. Barington CEO James Mitarotonda said the company's market leadership, brand value, and cash flow should attract considerable interest, likely from private equity. Barington owns about 1 million shares and plans to publish a letter to the board in the coming weeks, seeking board representation. The stock rose 3.3% in after-hours trading on the news. This follows a difficult quarter in which the company issued weak Q3 guidance and halted buybacks, making it vulnerable to activist pressure. Barington previously campaigned against the company in 2019 when it was L Brands.
At the time of this announcement, BBWI was trading at $18.00 on NYSE in the Trade & Services sector, with a market capitalization of approximately $3.5B. The 52-week trading range was $14.28 to $28.36. This news item was assessed with neutral market sentiment and an importance score of 8 out of 10. Source: Seeking Alpha.