May 23 (Reuters) - Activist investor Barington Capital Group LP is nominating two directors to women’s apparel retailer Chico’s FAS Inc’s board of directors, the Wall Street Journal reported on Monday, citing people familiar with the matter.
The hedge fund is arguing that the company's costs are too high relative to its peers and that its centralized structure is inefficient, the newspaper reported. (on.wsj.com/1WOARrz)
Chico’s declined to comment. Barington did not immediately respond to a request for comment.
The retailer faces the prospect of a proxy fight at its annual shareholder meeting, scheduled for July 21, the people were cited as saying.
Chico’s has been cooperating with Barington, has begun addressing some of its concerns and has separately been seeking new members to strengthen its nine-member board, the Journal reported.
One of the Barington nominees is said to be a former high-ranking executive at department store chain Macy’s Inc , the Journal said.
In a bid to avoid a proxy fight with the activist investor, cosmetics maker Avon Products Inc agreed in March to give Barington the right to approve the appointment of an independent director after months of pressure from the hedge fund. (Reporting by Ramkumar Iyer in Bengaluru; Editing by Peter Cooney)