Deckers investor increases pressure on board
28/06/2017
Marcato Capital Management, which owns 6% of the company, said at least six other shareholders have called for the Deckers board to pursue a sale. In November 2016, it sent a letter to the board urging it to explore a sale. Now it has suggested it would be willing to replace the whole board if a sale is not secured.
“While we typically seek to work constructively with boards to implement change, we view this situation differently,” Marcato managing partner Mick McGuire said in a letter to the board. “If, for any reason, the process fails to produce a desirable outcome, we believe a new management team led by a new board of directors will be much more likely to succeed in achieving the revenue and expense opportunities at Deckers.”
In April 2017, Deckers, which is best known for producing the Ugg brand of double-face sheepskin boots (pictured), announced its board would “review a broad range of strategic alternatives”, possibly including the sale of the company or of one of its brands. It warned at the time that there was “no assurance that the strategic review process will result in a transaction”.
Share this story:
