Dillard's Inc. shareholder Barington Capital Group LP criticized the department-store chain's chairman for bad corporate governance and an insular culture after a second-quarter loss that exceeded analysts' estimates.
"The status quo is clearly unacceptable and has been destroying shareholder value," James Mitarotonda, chief executive officer of the New York-based hedge-fund firm, wrote in a letter today to Dillard's directors.
Dillard's pretax loss of $24.5 million for the quarter was the largest on record, analysts at Credit Suisse Group wrote in a note to clients after the results were announced on Aug. 28. Dillard's shares have fallen 34 percent this year, compared with the 3 percent gain in the Standard & Poor's 500 Index.