Activists Target Dillard's Board

Dillard’s Inc. recently received notice from investment firms Barington Capital Group L.P. and Clinton Group Inc. that they are looking to nominate four new directors for election at the company’s annual meeting on May 17.

The notice, Dillard’s said in a statement, will be forwarded to the executive committee of the company’s board for review, and no current action by the company’s shareholders is necessary. Barington’s nominees include Chairman and CEO James A. Mitarotonda, Charles M. Elson, Nick White and Eric S. Salus, according to Dow Jones Newswires.

Barington, which represents a group of investors including Clinton Group that owns about 5.6 percent of Dillard’s, according to Arkansas News Bureau, said “the company’s vast value potential is not being realized,” according to Dow Jones Newswires. The firm added that the company would be worth more than its current stock price if managed effectively.

Barington has been criticizing the company since the middle of last year, and has sought to maximize shareholder value. “We have invested in Dillard’s, whose shares we believe are undervalued, as we are convinced that we can assist the company in dramatically improving shareholder value,” the investment firm said last June, according to Reuters.