Dillard's reaches pact to avert proxy fight

ATLANTA, April 1 (Reuters) - Retailer Dillard's Inc (DDS.N: Quote, Profile, Research) said on Tuesday that it reached an agreement with a shareholder group that will avoid a proxy fight at its May annual meeting.

The retailer said it agreed to nominate four candidates for election as directors at the meeting, all of whom have retail experience. Dillard's said hedge fund managers Barington Capital Group and Clinton Capital Group agreed to stop their efforts to elect a slate of four nominees to the board.

Dillard's also said it plans to close underperforming stores, and will cut unnecessary costs and subject future commitments for new stores to return-on-capital requirements set by its board and management.

(Reporting by Karen Jacobs, editing by Richard Chang)