Investor Dan Loeb’s Third Level Plans Proxy Combat at Bathtub & Physique Works

Whereas discussions between Third Level and the corporate “initially led to productive initiatives,” together with the appointment of 1 board member Loeb mentioned his agency proposed, Lucy Brady, issues have taken a downhill flip, Loeb wrote. Third Level had proposed a second board candidate to behave as shareholder consultant, he added, however that particular person was rejected.

On Wednesday, Third Level mentioned it was considering escalating stress on the corporate’s board and getting ready to launch a proxy battle.

“Our discussions have stalled and our considerations about the way in which this Board operates have intensified,” Loeb wrote in a letter to the corporate’s board of administrators. “We imagine it’s crucial {that a} shareholder consultant is added to supply vital oversight and have been clear with the Firm that failure to take action would go away us no different however to pursue a proxy contest,” or try to assemble shareholder votes to press for change.

Bathtub & Physique Works didn’t instantly reply to a request for remark.

Third Level’s transfer was spurred by the corporate’s announcement Tuesday that it was appointing Steve Voskuil, chief monetary officer of the
Hershey
Firm, to the board of administrators. Voskuil’s appointment “doesn’t assuage our considerations about substantial company governance shortcomings,” Loeb wrote.

Within the letter, Loeb recognized a sequence of shortcomings, from the quantity executives are getting paid to the corporate’s determination to separate itself from
Victoria’s Secret
(
VSCO
) in 2021.

The shares closed 2.8% increased on Wednesday. They have been largely unchanged in after-hour buying and selling.

Write to Sabrina Escobar at [email protected]