BeaconLight asks retailer Jos A Bank to return cash to investors
Jos A Bank Clothiers Inc 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 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)