(Reuters) - Potbelly Corp (PBPB.O) is under pressure from an activist shareholder that wants the sandwich chain to change its strategy or explore the sale of the company, according to a letter obtained by Reuters.
Ancora Advisors LLC, which said it owns 4 percent of Potbelly shares, outlined steps it wants the company to take to boost its share price, including franchising more of its restaurants. It said it should explore a sale if it does not go through with these proposed changes.
“We would strongly urge it to immediately pursue a sale/ going-private transaction, as we do not believe the current strategy would be attractive for current or potential public/minority shareholders over any investable time frame,” Ancora said in the letter, which was sent to the board.
Potbelly, a chain of sub and sandwich shops based in Chicago with a $276 million (218 million pounds) market capitalisation, did not immediately respond to a phone call seeking comment.
Reporting by Michael Flaherty in New York; Editing by Bernadette Baum