Investor accuses Deckers board of “failed business strategy”
08/11/2017
A dispute between the Deckers board and Marcato, one of the company’s most important investors, has escalated in recent months. In September, Marcato nominated 10 candidates to replace the entire Deckers board after growing frustrated by the delay in finding a buyer for the group. It had threatened to do this in June when calling for Deckers to be sold.
At the end of October, Deckers announced that it had completed a strategic review and concluded that it “will not actively pursue a sale of the entire company at this time”.
This announcement appears to have further angered Marcato, which is now looking to force through its board nominations.
In a letter to shareholders, Mick McGuire, a managing partner at Marcato, wrote: "For several years, Deckers' board of directors and management have presided over a failed business strategy that has led to a precipitous decline in profit margins, runaway corporate overhead expenses, wasteful capital spending, and unsuccessful acquisitions triggering large write-downs.”
He continued: “Simply put, Deckers' board has failed its stockholders repeatedly, over a multi-year period, and should not be trusted to deliver on its goals.”
Marcato said it will take the “necessary step” of replacing the current board of directors with people “who will bring the experience, focus and commitment to help the company succeed."
Share this story:
