For the second time in four months, activist investor Ryan Drexler of Consac LLC urged Quiksilver to explore options to sell the company.
In a letter to Quiksilver President and Chief Executive Andrew
Mooney, Drexler, who owns more than 2 million shares of Quiksilver, accused the company of taking no action to explore a sale since his
previous letter in October.
He noted in a statement that in the past four months the company has reported
disappointing results for fiscal 2014, abruptly postponed reporting Q1
2015 results last week due to a “revenue cut-off issue,” and saw four
law firms announced that they are exploring various claims on behalf of
shareholders.
“There is no indication of any creative effort in
terms of fashion design or advertising and marketing,” Drexler wrote in his letter dated March 9. “Given the emerging accounting and legal
problems, declining consumer demand and lack of creativity
I cannot see a
reason to place faith in the current management’s turnaround plan. In
my opinion, the promise of better times being just around the corner is
nothing more than wishful thinking.”
Drexler is an investor in consumer and retail companies, as well as the former operator of a well-known consumer brand. As such, he said he was profoundly disappointed with the company’s performance
“I again urge you and
the Board to unlock the value of the company's well known brand names,
global retail and wholesale presence and supply chain by exploring a
sale of the company to maximize shareholder value consistent with the
board's fiduciary obligations,” Drexler said in his letter.
