Destination Maternity in proxy battle
The nation’s largest maternity apparel retailer is facing a challenge from an activist shareholder group at its annual meeting on May 23.
Destination Maternity is defending its slate of board nominees — and its overall strategy — amid a challenge from The Miller Group. The retailer on Friday sent a letter to stockholders in which it said Miller Group wants to take control of the company and replace Destination Maternity’s entire board of directors with a slate of “unproven and untested nominees” who lack “institutional knowledge” of the company. (The group holds a 7.6% stake in Destination Maternity, making it the second largest shareholder.)
“Additionally, not one of the Miller Group's nominees appears to possess any experience as a director of a public company of Destination's size and complexity, and only two of the four have ever served in a senior/leadership role at a public company,” the retailer stated. For the full statement, click here.
In the letter, Destination Maternity said that some of Miller Group's proposed nominees could be suitable to serve as director additions, but none are qualified to serve as replacements.
“Simply put, their collective experience and relevant expertise pale in comparison to the decades of corporate leadership and board experience in the retail and apparel industry represented on your board,” Destination Maternity stated.
Destination Maternity is defending its slate of board nominees — and its overall strategy — amid a challenge from The Miller Group. The retailer on Friday sent a letter to stockholders in which it said Miller Group wants to take control of the company and replace Destination Maternity’s entire board of directors with a slate of “unproven and untested nominees” who lack “institutional knowledge” of the company. (The group holds a 7.6% stake in Destination Maternity, making it the second largest shareholder.)
“Additionally, not one of the Miller Group's nominees appears to possess any experience as a director of a public company of Destination's size and complexity, and only two of the four have ever served in a senior/leadership role at a public company,” the retailer stated. For the full statement, click here.
In the letter, Destination Maternity said that some of Miller Group's proposed nominees could be suitable to serve as director additions, but none are qualified to serve as replacements.
“Simply put, their collective experience and relevant expertise pale in comparison to the decades of corporate leadership and board experience in the retail and apparel industry represented on your board,” Destination Maternity stated.