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FORT MYERS — Two influential proxy advisory firms are backing directors nominated by Chico's FAS to serve on the retailer's board in a rebuke of an activist investor.
Institutional Shareholder Services and Glass Lewis, two independent firms that advise investors on corporate governance, backed the company's four nominees for election to Chico's board at its annual meeting on July 21.
The Fort Myers-based women's retailer operates 1,517 stores in the U.S. and Canada and sells merchandise through franchise locations in Mexico. Its brands include Chico's, White House | Black Market and Soma.
Barington Capital Group has challenged the company by nominating two directors for election to Chico's board, arguing the retailer has not been aggressive enough about cutting costs and has failed to create value for shareholders. Barington controls 1.4% of Chico's shares.
“We are pleased that both Glass Lewis and ISS support the election of all four of Chico's FAS' highly-qualified director nominees — Shelley Broader, Bonnie Brooks, Janice Fields and Bill Simon,” reads a statement posted on Chico's website on July 13. “The recommendations from these two leading proxy advisory firms are a testament to the strength of our world-class nominees and the positive change underway at Chico's FAS.”
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