- Wednesday, October 16, 2024
The Chefs' Warehouse has reached an agreement with activist investor Legion Partners Asset Management to appoint three new independent board members. This strategic move is set to bring fresh perspectives and expertise to the Ridgefield-based food distributor.
New Board Members
As part of the agreement, the company will nominate Richard Peretz and Wendy Weinstein to the board at the next annual meeting. Lester Owens has already been appointed to the board as of Monday. These new members will play a key role in shaping the future direction of Chefs' Warehouse.
Board Restructuring
Chefs' Warehouse has committed to reducing the size of its board from 14 members to 11, and eventually down to nine after the 2025 annual meeting. This restructuring will see five incumbent directors stepping down, paving the way for a more streamlined and efficient decision-making process.
Strategic Initiatives
In addition to the new board appointments, the company has agreed to form an operational and financial performance task force. This task force will focus on identifying key areas for improvement and driving margin enhancements. Its recommendations will be presented to the board for further action.
Growth Targets
The agreement with Legion Partners includes specific financial metrics that Chefs' Warehouse must meet to extend the partnership for a second year. This commitment to achieving growth targets demonstrates the company's dedication to delivering value to its shareholders.
Overall, these developments mark an important milestone in Chefs' Warehouse's journey towards sustainable growth and operational excellence. With a renewed focus on governance and performance, the company is well-positioned to navigate challenges and capitalize on opportunities in the competitive food distribution industry.
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