Key Summary: On August 7, 2023, Barington urged the company to enhance shareholder value by focusing on cash generation, debt reduction, and operational efficiency, proposing $300 million in annual SG&A cost cuts, inventory reduction, and gross margin improvement. On November 16, 2023, the company entered into a cooperation agreement with Barington, appointing Colin Browne, Natasha Chand, and John Mehas as independent directors.Market Cap: $1.4 billion | Hanesbrands Inc., a consumer goods company, designs, manufactures, sources, and sells a range of basic apparel for men, women, and children.
On August 7, 2023, Barington sent a letter to the Chairman of the board urging the company to focus on cash generation, debt reduction, and efficient operations for shareholder value. They suggest swift cost-cutting, skilled leadership additions, and immediate action for a stronger apparel company future. Barington proposes a plan for the company to enhance shareholder value by taking three crucial steps: 1) Cut SG&A costs by $300 million annually, using savings to reduce debt; 2) Reduce inventory to 170 days by year-end and 150 days within 18 months, directing proceeds towards debt reduction; 3) Improve gross margins via facility optimization. Barington asserts that this cost-effective strategy, potentially led by a new CEO, could position the company for excellence and substantial long-term shareholder value, requiring additional experienced directors on the board. Source
On November 16, 2023, the Company entered into a cooperation agreement with Barington Capital Group and pursuant to it, the company has appointed Colin Browne, Natasha Chand and John Mehas as independent directors to the Board. Source
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