Chico's proxy battle

It's only been 180 days since Shelley Broader was named president and CEO of women's retailer Chico's FAS, but the job of turning around the struggling company just got a lot harder.

Barington Capital Group, a New York City investment firm that owns 1.4% of Chico's stock, says it plans to seek two seats on the company's board. The news was unwelcome: In a proxy statement, Fort Myers-based Chico's urges shareholders to reject Barington's nominees to the board at the annual meeting in July.

In a statement, Barington says Chico's “has failed to create meaningful long-term value for stockholders.” The company's stock is down about 77% from its high of $48.90 on Feb. 21, 2006, and its shares have underperformed its peers and the market over short and long periods (see chart).