Investment firm Mill Road Capital has urged Big Lots Inc’s board to pursue a sale of the discount home furnishing chain, a regulatory filing showed on Tuesday, sending the company’s shares up nearly 15%.
Mill Road, which disclosed a 5.1% stake in the retailer, said a sale could maximize shareholder value at an assumed price of $55 to $70 per share, which represents a premium of 72% to 119% to Big Lots stock’s Monday’s close.
Big Lots declined to comment on Mill Road’s push for the company’s sale.
The company’s shares have fallen nearly 18% this year, as the spread of the Omicron coronavirus variant hurt customer traffic at its stores and surging transportation costs pinched its profit margins.
Source: Reuters.com