Rejected: Children’s Place nixes alternate director slate

Specialty retailer the Children’s Place has rejected an alternate slate of directors proposed by a firm agitating for change after it acquired roughly 2% of the retailer’s outstanding shares.

The operator of nearly 1,100 stores said it had received notice from Barington Capital Group, L.P. and Macellum Advisors GP, LLC, owners of collectively own less than 2% of the company’s shares, that they had nominated three individuals in opposition to The Children’s Place’s three nominees who are standing for re-election at the company’s annual meeting. Children’s Place Chairman Norman Matthews, Kenneth Reiss, chair of the Audit Committee and Stanley Reynolds, a member of the Audit Committee are standing for re-election at the company’s annual meeting scheduled for May 22, 2015.

The retailer said its Board had evaluated Barington and Macellum’s nominees and concluded that the company’s three nominees and the other members of the Board have the right combination of expertise, experience and independence. The retailer also concluded more change isn’t need at this time because six of its eight Board members have been added during the past five years, including two independent directors who were added last year.

“We appreciate constructive input from our shareholders and are always open to listen to ideas to improve the cmpany. However, we believe that Barington and Macellum’s views on the company’s leadership and performance are simply incorrect,” Matthews said. “Our Board and management team are driving a transformation of The Children’s Place, which has resulted in a significant increase in shareholder value, measured by an increase in stock price, share repurchases and the payment of dividends. Substantial progress has been made, and we expect to continue to see the benefits of our meaningful investments in 2015.”

Matthews cited as accomplishments updated merchandise assortments, the development and implantation of a sweeping systems and technology plan, transformation of the outlet channel, launch of an international franchise and wholesale businesses and the ongoing evaluation of store locations.

“We believe The Children’s Place is well positioned to continue to excel in the intensely competitive specialty children’s apparel category,” Matthews said.