Alternative Investments: Activists Pressure GameStop for Board Seat
Hestia Capital Partners is part of a group of investors pushing for a board seat at embattled gaming retailer GameStop (NYSE: GME).
A report indicates that Hestia joins Permit Capital Enterprise Fund and its affiliates in the pursuit of a board seat. They raised concerns in a letter that no current director has a sizeable stake in the company. The group owns about 7.5% of the company stock.
GameStop stock has suffered due to the ongoing selloff fueled by the coronavirus outbreak. It has also underperformed as retail companies struggle against e-commerce firms like Amazon.com (NASDAQ: AMZN) and large retailers like Walmart Stores (NYSE: WMT).
Comments from Hestia Capital Partners and Others
The investment group released a statement about its position on Thursday.
Kurt Wolf, Managing Partner and GP of Hestia Capital Partners said: “While we certainly applaud the Board for finally recognizing the need for well-overdue changes to its composition and skillset, we remain concerned with this Board’s ability to make positive progress without persistent stockholder engagement from inside the boardroom.”
In addition, John Broderick, a Partner with Permit Capital, commented.
“Now that the Board has announced the addition of three new Board members and the impending retirement of six long-tenured Directors over the next 16 months, we believe there is ample room for a stockholder representative to join this Board,” he said.
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