Barington Urges Sale Talks at Bath & Body Works

Activist investor Barington Capital has built a roughly 0.38% stake in Bath & Body Works, about 780,000 shares, and is pressing the personal-care retailer to explore a strategic sale that could include private equity offers. The firm is also seeking a board seat and wants the company to hire financial advisers to review options.

Barington chief James Mitarotonda described Bath & Body Works as undervalued and pointed to recent management turnover as weighing on performance. He plans to send a letter to the board in the coming weeks and urged measures to lift revenue and support the share price, including stock buybacks. In the letter he wrote, “changes are needed.”

Ownership records as of June 30 showed Barington’s holdings. Bath & Body Works shares rose about 2% in after-hours trading after the disclosure; the stock is down roughly 13% year to date. The company is based in Columbus, Ohio, and has been working to improve results as consumers have cut back on mall visits and in-person shopping.

Daniel Heaf, who became CEO last year, has focused on product development and expanding the retailer’s digital offerings. In August, the company forecast a larger-than-expected decline in current-quarter sales, citing weaker store traffic. Heaf later said turnaround initiatives remain at an early stage and had not yet fully offset operating challenges.

Mitarotonda pointed to repeated executive turnover over the past five years as a factor in the company’s struggles. Barington has previously targeted businesses tied to Bath & Body Works, pushing for board changes at Victoria’s Secret and advocating adjustments at L Brands before those companies separated.

Bath & Body Works and Barington did not immediately respond to requests for comment.