WSJ : Activist Investors To Urge Avon Products To Explore A Sale

(RTTNews) - A group of activist investors are joining together to call on Avon Products Inc. (AVP) to seek a buyer, in a move that could set up a fight for the company's board as a key deadline looms, the Wall Street Journal reported.

Three investors, who together own a roughly 3.5% stake in Avon, believe a yearslong effort to reshape the storied brand has run out of time and requires new ownership and leadership, the Journal reported citing to a letter they plan to send to the board.

Shah Capital, Barington Capital Group LP and NuOrion Partners have all been investors for several years and pushed, in some cases publicly, for changes at the beauty-products seller. While Barington and NuOrion had earlier partnered, Shah has just joined their alliance, the report said.

After struggling for years, Avon is already undergoing a major transition, with Chief Executive Sheri McCoy expected to step down on March 31.

"Avon's board of directors and management team are committed to delivering value for all shareholders and will continue to take actions to improve performance," a spokesman reportedly said Sunday, pointing to the CEO search as being on schedule and saying the company values shareholder input. "We are confident that the changes we are undertaking will strengthen and grow the business."