July 14, 2016 / 5:02 PM / in 2 years

BUZZ-Retailers ripe for activist fund intervention-BB&T

** Troubles at Bed Bath & Beyond, Pier 1 Imports and Restoration Hardware could attract activist investors keen to fix the companies, BB&T Capital writes in research note

** Traditional retailers have been struggling with weak sales and profits due to the onslaught of Amazon.com and shifts in consumer spending preferences

** Activist investors have pressed some retailers for change. Starboard Value wants Macy’s to sell valuable real estate, which it says is not reflected in the company’s share price

** Over past year, shares of BBBY down 35 pct, PIR has lost 60 pct, and RH has tumbled 71 pct

** Poor stock performance and an insular management team at BBBY could lead activist investors to push it to sell non-core assets and “reconsider its aggressive e-commerce expansion,” writes BB&T analyst Anthony Chukumba

** Activist investors could push PIR to close some of its over 1,000 stores and urge RH to reconsider plans to expand its design gallery and to widen its management team, Chukumba writes

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