Barington Capital Sends Letter Calling for Change at Hanesbrands
Barington Capital Group L.P. and its affiliates (“Barington”), a fundamental, value-oriented activist investor which is a shareholder of Hanesbrands Inc. (NYSE: HBI) (“Hanesbrands” or the “Company”), yesterday sent a letter to Ronald L. Nelson, Chairman of Hanesbrands, calling for immediate and decisive actions to create long-term value for shareholders.
- Barington Capital Group L.P. and its affiliates (“Barington”), a fundamental, value-oriented activist investor which is a shareholder of Hanesbrands Inc. (NYSE: HBI) (“Hanesbrands” or the “Company”), yesterday sent a letter to Ronald L. Nelson, Chairman of Hanesbrands, calling for immediate and decisive actions to create long-term value for shareholders.
- In its letter, Barington highlights that Hanesbrands’ share price has declined by -51.6% in the last year alone.1 Barington believes this destruction in value is due to the Company’s largely ineffective response to recent market challenges, poor operating performance, and excessive debt burden.
- Additionally, in its letter, Barington questions the ability of the incumbent board and management team to guide the Company through its current challenges.
- Barington invests in undervalued publicly traded companies that Barington believes can appreciate significantly in value when substantive improvements are made to their operations, corporate strategy, capital allocation and corporate governance.