Engaged Capital Gains Support from VF Corp Founding Family in Bid for Board Seats
Activist investor, Engaged Capital, has received backing from the founding family of VF Corp as it seeks to secure board seats and drive change at the parent company of popular brands such as North Face, Vans, and Timberland.
According to Kelly Barbey, a spokesperson for the activist investment firm, Engaged Capital, which holds a 1.3% stake in VF Corp, has garnered support from descendants of John Barbey, who founded VF in 1899. The Barbey family now collectively owns around 15% of VF.
In reference to the support received, Kelly Barbey noted that the Barbey family is seeking the replacement of two directors on VF’s 12-member board, specifically Clarence Otis, who has been a director since 2004, and Juliana Chugg, a director since 2009. The family cited their lack of response to the challenges faced by the company in recent years as their reason for seeking new board members.
Engaged Capital disclosed its position in VF Corp last year and has been pushing for board representation ever since. Barbey stressed the urgency of achieving the requested changes, emphasizing the importance of these changes for both public shareholders and the beneficiaries of the Barbey trust.
Analyst comment
Positive: Engaged Capital gains support from VF Corp Founding Family in bid for board seats.
Short as an analyst: With the backing of the VF Corp founding family, Engaged Capital is likely to secure board seats at VF Corp, leading to potential changes in the company’s strategy and management. This move could benefit both public shareholders and the beneficiaries of the Barbey trust.
