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November 28 (Reuters) – Activist investor Jonathan Litt on Wednesday renewed the call for the sale of the Saks Fifth Avenue brand, while asking the owner of Hudson's Bay Co to make new appointments to the board of directors, claiming that the company's shares were undervalued.
Litt, founder of the Land & Buildings Investment Management LLC hedge fund, once criticized the Canadian owner of a department store for his poor performance and mismanagement.
Litt wants Hudson Bay to operate as a real estate company and sell its retail investment.
"HBC's board of directors has an appalling record, overseeing more than $ 2 billion in value destruction for shareholders with a 60% drop in stock prices over the past three years," said Litt. to Hudson's Bay companies, in a letter.
In September, Chief Executive Officer Helena Foulkes said the department store operator would focus on transforming its underperforming divisions.
Previously, Litt had also expressed concerns about executive director Richard Baker's $ 54.8 million compensation.
Land & Buildings held a close interest of 5% in the company in July 2017 and has not provided an updated figure for this stake.
Litt said on Wednesday that the company could see its stock price "double or triple" if management ceded Saks Fifth Avenue, Lord & Taylor and its remaining stake in the German company Galeria Kaufhof.
Hudson's Bay did not immediately respond to requests for comment.
Hudson's Bay shares traded approximately 5% to 8.23 Canadian dollars on the Toronto Stock Exchange. (Report by Shanti S Nair in Bengaluru, edited by Shinjini Ganguli)
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