Groupon adopts ‘poison pill’

Groupon has adopted a limited duration shareholders rights plan, citing market volatility and uncertainty as a result of the COVID-19 pandemic.

The online deals retailer said it did not adopt the plan, commonly referred to as a “poison pill,” in response to any specific takeover bid or other proposal to acquire control of the company. Two other retailers, Chico’s FAS and Men’s Wearhouse parent company Tailored Brands, have also adopted similar plans amid the virus outbreak. 

“Given the current unprecedented environment and trading levels as well as the importance of maintaining focus on the company’s operations, safeguarding the welfare of employees and serving customers, the board believes adopting the rights plan is in the best interest of all Groupon stockholders,” the company said in a statement.

Groupon has been on a downward slide recently. It missed expectations in its fourth quarter amid declining revenues. In late March, it announced that CEO Rich Williams and COO Steve Krenzer were no longer serving in their roles. (They continue as employees of the company.) Aaron Cooper, Groupon's president of North America, has been appointed interim CEO while the company searches for a permanent chief.