Hanesbrands faces pressure from activist Barington Capital, which wants to see costs and debt cut

Activist concern steadfast Barington Capital Group is pressuring Hanesbrands to trim its costs, make currency and possibly prime a caller CEO arsenic the apparel maker's marketplace headdress shrinks, the steadfast announced Tuesday.

In a Monday missive to Hanesbrands Chairman Ronald Nelson, Barington's CEO James Mitarotonda outlined the issues facing the institution and called for a bid of changes. 

"We judge that Hanesbrands presently sits astatine a captious juncture and indispensable instantly absorption connected currency procreation and indebtedness simplification successful bid to make semipermanent worth for shareholders," helium wrote. 

"We judge that management's mostly ineffective effect to caller marketplace challenges is liable for the Company's rapidly deteriorating results," Mitarotonda added. "Further, Hanesbrands' excessive indebtedness load appears to amplify the interaction of mediocre operating show connected Hanesbrands' quality to make worth for shareholders."

Hanesbrands, which is known for its enactment of basal T-shirts, bras and underwear, has seen its banal plummet astir 17% this year. It has grappled with brushed income and plunging profits arsenic wholesalers propulsion backmost connected ordering.

Shares roseate astir 2% connected Tuesday.

Barington wants to spot Hanesbrands trim selling, wide and administrative expenses by astatine slightest $300 cardinal per twelvemonth and usage the savings to wage down debts. It besides wants the institution to amended its inventory practices.

Further, Barington believes Hanesbrands needs caller committee members with "more applicable skills and experience," and possibly a caller CEO, to crook its concern around, the missive said. 

"We judge that the close committee and absorption squad and an contiguous absorption connected currency procreation and indebtedness simplification tin presumption Hanesbrands to go a best-in-class, vertically integrated apparel institution and execute durable profitable growth," Mitarotonda wrote. 

In response, Hanesbrands, which is owed to study net connected Thursday, said it stands by its existent maturation plans but is "open-minded with respect to further paths to amended show and make value." 

It besides appeared resistant to immoderate changes to its board.

"HanesBrands' Board actively oversees the improvement and execution of our strategy, operations and superior allocation decisions, successful collaboration with the absorption team. The Board and absorption squad are profoundly experienced successful areas applicable to our strategy and portfolio," the institution said successful a property release. 

"Further, the Board is committed to ongoing refreshment and having the close premix of expertise and diversity, arsenic demonstrated by the summation of 3 autarkic directors to our Board implicit the past 4 years," Hanesbrands said.

It's not wide however ample Barington's involvement successful Hanesbrands is, and whether it volition effort to nominate immoderate committee members.