Little Rock, Ark. The Associated Press (AP) reported Friday that a group of Dillardâ€™s Inc. investors has petitioned the retailerâ€™s board of directors with a request that the Dillard family relinquish control of its shares.
A letter from the Barington Capital Group and the Clinton Capital Group, which together own 5.67% of Dillardâ€™s class A stock, asked that independent directors be appointed to determine a premium price for the Dillardâ€™s Class B shares, which are controlled by the Dillard family.
Under the current ownership, the shares owned by the Dillard family allow them to control eight of the companyâ€™s 12 board positions.
According to the AP report, the investors stated in their letter, â€śIt is clear to us that the company and its public shareholders are being penalized because of its A/B-share class structure.â€ť The letter recommended that the company should repurchase the Class B shares and adopt a â€śone-share, one-voteâ€ť structure, which would unseat the Dillard familyâ€™s ability to elect the majority of the board.