Directors at Pacific Sunwear called a planned board battle by Adrenalina a waste of time and money and said they back efforts by the retailers chief executive to turn around the business.
Lead director Peter Starrett wrote in a letter to Ilia Lekach, Adrenalina's CEO, “Your decision to initiate a proxy contest is unfortunate, as its in shareholders best interests for the company to dedicate its financial, management and other resources exclusively to the important task of operating our business.”
The response sets the stage for a battle over PacSun's board at the companys upcoming annual meeting expected to be held in April. Adrenalina, which owns 3.2% of the outstanding shares of PacSun, plans to nominate four candidates for PacSun's board as part of a bid to buy the surf-inspired chain. It has made several offers to buy Pacific Sunwear, but all have been rejected.
