August 13, 2013 / 8:01 PM / 4 years ago

BeaconLight asks retailer Jos A Bank to return cash to investors

(Reuters) - Jos A Bank Clothiers Inc JOSB.O came under fire from investment manager BeaconLight Capital LLC who demanded a reorganization of the men’s apparel retailer’s board and return of cash to shareholders.

Shares of Jos A Bank Clothiers rose as much as 13 percent on the Nasdaq on Tuesday.

“ We believe that the (Jos A Bank) stock should be worth $70 per share even at a discounted multiple to its peers,” BeaconLight said in a letter to the retailer on Tuesday.

The investor demanded Jos A Bank to immediately return all of its cash to shareholders, preferably through share buybacks.

The letter comes at a time when activist investor William Ackman stepped down from J.C. Penney Co Inc’s (JCP.N) board after a failed two-year attempt by his Pershing Square Capital Management hedge fund to remake the company into a more upscale retail chain.

Reporting by Aditi Shrivastava in Bangalore; Editing by Joyjeet Das

Our Standards:The Thomson Reuters Trust Principles.
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below