QUIKSILVER TARGET OF ACTIVIST: Bebe Stores Inc.’s activist investor Ryan Drexler of Consac LLC is now targeting Quiksilver Inc. in his second attempt at activism. Drexler, who owns over 2 million shares of the retailer, wants the Quiksilver board to consider a sale of the company through a “competitive bidding process.” In his opinion, the 17-month-old turnaround plan is a “failure.” One of the stats he gives is the approximate 80 percent decline in the stock price so far this year and the shift to a $42.2 million operating loss, excluding impairment charges, for the first three quarters of fiscal 2014 from the $11.4 million operating profit for the comparable year-ago period.
In Drexler’s letter to the Quiksilver board, he said that the “revenue declines by brand” indicate that the company’s fashions have fallen out of favor. A spokesman for Quiksilver did not respond to a request for comment.
Drexler last month began his first foray as an activist investor, targeting Bebe Stores where he also sought the sale of the company or for it to be taken private to maximize shareholder value. Drexler owns 2.7 million shares for Bebe.