Activist investor Engaged takes position in VF Corp.
Bloomberg
Activist investor Engaged Capital has taken a stake in VF Corp. and wants the the owner of the Vans
The Denver-based company should hire advisers to review non-core divestitures and publicly commit to no further acquisitions, Engaged said in presentation Tuesday at the 13D Monitor Active
It added that excess cash flow and divestiture proceeds should be used to retire debt, which amounted to about $7.9 billion as of July 1, according to data compiled by Bloomberg. VF should also bring in new board members, Engaged said.
VF rose 12% to $18.09 at 10:44 a.m. in New York trading Tuesday, giving it a market value of $7 billion.
Representatives for VF and Engaged didn’t immediately respond to requests for comment.
VF and other apparel makers have been struggling with supply chain challenges and brand relevance in recent years. The company, which also controls the North Face and Dickies
Last year, the company said that wholesale partners were canceling orders more often due to an “increasingly cautious” approach to consumer demand. It also cut its dividend in February to reduce debt.
