Key facts
- Activist investment firm Barington Capital Group has taken a new stake in Bath & Body Works.
- Barington Capital is pushing Bath & Body Works to explore a sale.
- Barington CEO James Mitarotonda stated that changes are needed at the company.
- Mitarotonda believes Bath & Body Works' market position, brand strength, and cash generation would attract buyer interest.
- Shares of Bath & Body Works rose about 3% in extended trading following the news.
Activist investment firm Barington Capital Group has acquired a stake in Bath & Body Works and is advocating for the company to explore a sale, according to a Bloomberg News report citing people familiar with the matter. Shares of the fragrance maker saw a roughly 3% increase in extended trading following the news.
Barington CEO James Mitarotonda expressed that "changes are needed" at Bath & Body Works. He believes the company's market position, brand strength, and cash generation capabilities make it an attractive prospect for potential buyers, including private equity firms. Both Bath & Body Works and Barington Capital did not immediately respond to requests for comment.