Bath & Body Works rose 3.3% in after-hours trading after a report that activist investor Barington Capital has taken a stake in the retailer and wants it to explore a sale. Barington CEO James Mitarotonda told Bloomberg that changes are needed at the company, saying its market leadership, brand value and cash flow should draw considerable interest, likely from private equity firms. Barington owns about 1 million Bath & Body Works shares and wants the company to increase revenue and repurchase shares. The firm plans to publish a letter to the board in the coming weeks and is looking into potential board representation. Barington previously led a campaign against the company in 2019, when it was named L Brands. Bath & Body Works told Bloomberg it regularly engages with shareholders and values their perspectives, and that its board and management team continually evaluate opportunities to enhance shareholder value.
Bath & Body Works Inc.Activist Barington Capital took a stake and is pushing Bath & Body Works to explore a sale, boosting the stock.
Barington is the activist taking the stake, but the news is about its target, not a direct financial impact on Barington.
