Hestia Capital, Permit Capital Push For Change At GameStop
Hestia Capital and Permit Capital, which between them own approximately 7.6% of GameStop's outstanding shares via two investment funds, have announced that they are seeking to nominate two individuals to add to GameStop's board.
The first nominee is Hestia's Managing Partner Kurt Wolf, which the duo believe will "will bring a strong corporate strategy background to the Board and a much-needed stockholder voice into the boardroom.". The second nominee is Paul Evans, a Senior Managing Director at Dillon Kane Group, a privately held group of affiliated companies.
Hestia and Permit's open letter to shareholders says that "We believe the Board has repeatedly failed stockholders through suboptimal strategic planning, poor capital allocation, inadequate oversight of management and ineffective communications to stockholders, customers and GameStop employees...the time for change is now."
The two firms say that recent changes to its board announced by GameStop are "too little and too late" and that "By the time the Board finally realized it had the wrong Board composition...more than $2.5 billion of value had already been destroyed."
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