Activist investor Engaged Capital said it took a stake in Vans owner VF Corp., pushing for aggressive changes.
Engaged is pushing for a number of aggressive changes, including $300 million in cost cuts.Shares of VF Corp jumped roughly 14% following the news, trading at over $18. The stock is down more than 30% so far this year. Engaged said shares of VF Corp. could jump to a share price of $46 within three years if proposed changes are implemented.Engaged said former VF Corp. CEO Steve Rendle, who abruptly left the company late last year, made a series of strategic errors during his tenure.
"We believe VFC's value destruction is directly attributable to Mr. Rendle's failed strategy and the Board's seeming unwillingness to intervene," the firm said. Engaged is pushing for a number of sweeping changes, namely an upwards of $300 million in cost cuts through"elimination of duplicative costs and corporate excess." It also wants the company to commit to holding off on acquisitions.The firm is, however, supportive of current CEO Bracken Darrell, who took the position in July."Mr. Darrell appears to have the transformation experience VFC urgently requires," Engaged said.
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