Carter's CEO Unveils Turnaround Plan as Hedge Fund Becomes Largest Shareholder
Jimmy Carter's, Inc. is undergoing significant changes under new CEO Douglas Palladini, who joined in early 2022. Meanwhile, hedge fund Roseman Wagner Wealth Management has emerged as the retailer's largest shareholder, acquiring nearly 17% of its shares. The board has responded by implementing a shareholder rights plan, also known as a poison pill.
Palladini, previously global brand president at Vans, took the helm to oversee Carter's turnaround and baby apparel operations. He unveiled a comprehensive plan in May, which includes cost-cutting measures like closing around 100 stores as leases expire. Despite investing in a new pricing strategy, Carter's has not seen positive comparable sales since 2019, a challenge exacerbated by the pandemic.
Roseman Wagner Wealth Management's substantial stake in Carter's caught the board off guard, as they were not given advance notice of the investment. In response, the board adopted a shareholder rights plan, set to expire in about a year. This plan issues one preferred share purchase right for each outstanding share to stockholders of record at the close of business on Oct. 3.
Carter's, Inc. continues its turnaround efforts under Palladini's leadership, with cost-cutting measures and strategic operations in baby apparel. Roseman Wagner Wealth Management's significant investment has led to the implementation of a shareholder rights plan, aiming to protect the company's interests while welcoming new shareholders.
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