San Francisco – Private equity firm Golden Gate Capital Corp. disclosed in a regulatory filing that it has purchased a 9.5% ownership stake in Ann Inc., parent of Ann Taylor.
In a letter to the Ann Inc. board of directors, Golden Gate said it looks forward to working collaboratively with Ann Inc. The company said that it did not plan to seek changes to the retailer’s board or executive team, or to push for a sale
Golden Gate emphasized that it had faith in Ann Inc.’s management, pointing out its investment in Ann Taylor stores and efforts to refresh its brand. The firm added that it supports the company’s strategy to bolster new store growth and productivity at existing stores, and is willing to lend its expertise.
“Ann is a great business, with a thoughtful strategy, led by an extremely competent management team who has a long track record of success,” Golden Gate said in the letter. “We also believe that the company’s stock is significantly undervalued, especially in light of today’s robust equity environment.”