Dive Brief:

• Kid apparel retailer The Children’s Place rejected three nominations by two activist investor firms, the company said Monday.

• Barington Capital Group, L.P and Macellum Advisors GP LLC, which together own 1.7% of the company's stock, made the nominations to oppose chairman Norman Matthews, as well as Kenneth Reiss and Stanley Reynolds. The companies had earlier sent a letter criticizing the retailer’s direction and the board’s leadership and urged exploration of a possible sale.

• The retailer said that while it appreciates feedback, it had reviewed the nominations and concluded that its board members have the expertise and leadership that it wants.

Dive Insight:

The investors behind these pushes for change at The Children’s Place, simply put, are unsatisfied with the company’s operating results, despite its good performance on Wall Street. The investors say executive compensation is too high, that its sales and margins could improve, and that the right leadership team and/or a sale, would make the difference.  

“Our Board and management team are driving a transformation of The Children’s Place, which has resulted in a significant increase in shareholder value, measured by an increase in stock price, share repurchases, and the payment of dividends," Matthews said in an email to Retail Dive. "Our management team has updated our merchandise assortments, developed and is implementing a sweeping systems and technology transformation plan, transformed our outlet channel, launched international franchise and wholesale businesses, and evaluated and continues to optimize our store fleet."

The largely mall-based specialty store is facing declining mall traffic and increased competition from general merchandise retailers, so some amount of change seems likely. Stay tuned — this fight is probably not over.