Specialty retailer feels some investor pressure
Two investment firms think Genesco, which operates a variety of brands, should divest some of its businesses.
In a filing with the Securities and Exchange Commission, representatives of Legion Partners Asset Management and 4010 Capital stated they see Genesco shares as undervalued and “an attractive investment opportunity.” The two firms, which combined control about 5.3% of Genesco, also suggested it was time to sell off certain parts of the company.
“One of the key areas that does not appear to be well understood or fully appreciated by the market is the opportunity for [Genesco] to monetize certain segments of its business and return a significant amount of capital to shareholders,” stated the firms’ filing. “Such transactions have become even more actionable given the recently enacted federal tax law changes.”
In response, Genesco issued a statement in which it said it welcomes open communication with all its shareholders and “values constructive input and suggestions that may advance its goal of enhancing shareholder value.”
“We have engaged in various discussions with representatives of Legion Partners and expect to continue a constructive dialogue, the company stated.”
Based in Nashville, Genesco sells footwear, headwear, sports apparel and accessories in more than 2,725 retail stores and leased departments throughout the U.S., Canada, the United Kingdom, the Republic of Ireland and Germany, principally under the names Journeys, Journeys Kidz, Shi by Journeys, Schuh, Schuh Kids, Little Burgundy, Lids, Locker Room by Lids, Lids Clubhouse, Johnston & Murphy, and on Internet websites.
In a filing with the Securities and Exchange Commission, representatives of Legion Partners Asset Management and 4010 Capital stated they see Genesco shares as undervalued and “an attractive investment opportunity.” The two firms, which combined control about 5.3% of Genesco, also suggested it was time to sell off certain parts of the company.
“One of the key areas that does not appear to be well understood or fully appreciated by the market is the opportunity for [Genesco] to monetize certain segments of its business and return a significant amount of capital to shareholders,” stated the firms’ filing. “Such transactions have become even more actionable given the recently enacted federal tax law changes.”
In response, Genesco issued a statement in which it said it welcomes open communication with all its shareholders and “values constructive input and suggestions that may advance its goal of enhancing shareholder value.”
“We have engaged in various discussions with representatives of Legion Partners and expect to continue a constructive dialogue, the company stated.”
Based in Nashville, Genesco sells footwear, headwear, sports apparel and accessories in more than 2,725 retail stores and leased departments throughout the U.S., Canada, the United Kingdom, the Republic of Ireland and Germany, principally under the names Journeys, Journeys Kidz, Shi by Journeys, Schuh, Schuh Kids, Little Burgundy, Lids, Locker Room by Lids, Lids Clubhouse, Johnston & Murphy, and on Internet websites.