Shares of Jos. A. Bank Clothiers Inc. jumped 12.5 percent Tuesday after investment manager BeaconLight Capital LLC urged the Hampstead-based men's apparel chain to change direction by reorganizing its board and returning cash to shareholders.
"We are convinced that tremendous value is trapped inside the company," Ed Bosek, BeaconLight's managing partner said in a publicly released letter Tuesday to the board.
Bank shares rose $5.03 to close at $45.33 per share on the NASDAQ.
BeaconLight, which owns more than 1 percent of Jos. Bank stock, criticized the company's performance, lack of communications with shareholders, strategy of seeking acquisitions and "staggering" cash reserve of $377 million at the end of the fiscal year.
"The company's hoarding of cash stands as the last straw for most investors," the letter said. "The company has never paid a dividend or re-purchased any shares."
The company did not return a request for comment Tuesday.
The letter said Bank's stock should be worth $70 per share and called for other shareholders to demand change, including adding independent directors with no connections to current members.Copyright © 2015, The Baltimore Sun