Retailer responds to agitated shareholder

FORT MYERS — Chico's FAS, in a letter to investors posted today, accused shareholder Barington Capital Group of misleading investors about the scope of cuts at the women's retailer.

Under the newly appointed CEO Shelley Broader, Chico's has announced cuts of as much as $85 million. “While we expect to announce further cost reductions, Barington's suggested cuts ignore reductions that have already been accomplished and risk harming the very brand differentiators that have supported our success,” according to a Chico's letter to shareholders dated June 16.

Barington, which controls 1.5% of Chico's stock, has proposed two candidates for election to Chico's board at the annual meeting next month, arguing that the company's recent cost-cutting measures have been insufficient. The stock is down more than 30% over the past 12 months and has fallen about 78% from its high of $48.90 in February 2006, according to a statement from Barington on June 14.