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FORT MYERS — The board battle at Chico's FAS took another turn Wednesday as the women's retailer responded to a critical shareholder who has nominated two directors.
In a lengthy statement posted on its site Wednesday, Chico's says Barington Capital Group's two director nominees aren't qualified to be on the company's board and accused it of a “self-serving proxy contest.”
Barington has nominated its president and CEO, James Miratonda, and Janet Grove, the former vice chairman of Macy's department store chain, to Chico's board in a proxy contest. Chico's nominees include Shelley Broader, the president and CEO of Chico's; Bonnie Brooks, vice chairman of Hudson's Bay Co.; Janice Fields, former president of McDonald's USA; and Bill Simon, former president and CEO of Walmart U.S.
Barington has been critical of Broader, saying she hasn't proposed significant enough marketing cuts since she was hired recently. Chico's response: “Since Ms. Broader joined the company six months ago, we have announced four new focus areas aimed at driving growth on the top and bottom line, launched multiple new initiatives to enhance operating efficiencies and customer focus, made numerous key hires and governance enhancements and identified $65 million to $85 million in expected annual costs savings.”
Chico's directors will be elected at its annual meeting on July 21. “We believe that electing either of Barington's less qualified nominees would harm shareholder value and the significant progress we are making,” the company says in a statement.
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