Defended against activist investor, protecting long-term strategy
7/24/2025
Client: Confidential Retail Brand
An activist investor launched a public campaign to force a sale of a well-known retail brand, threatening to derail a successful long-term growth strategy. The company needed to defend its board and strategy to protect shareholder value.
Objective
To defend the company's board and its long-term strategic plan against a public attack from an activist investor, and to win a proxy contest to protect the future of the company.
Approach
- Conducted a rapid analysis of the activist's track record and arguments to identify key vulnerabilities.
- Developed a compelling counter-narrative that highlighted the success of the company's current strategy and the strength of its board.
- Launched a multi-channel communications campaign to deliver this narrative to shareholders, employees, and the media.
- Engaged directly with key institutional investors and proxy advisory firms to secure their support.
- Prepared the leadership team for a high-stakes proxy contest, including the development of all shareholder communications.
Outcome / Impact
- The company won the proxy contest with a decisive majority of shareholder votes.
- The activist investor abandoned its campaign and sold its stake in the company.
- The company's stock price increased as investor confidence in its long-term strategy was reaffirmed.
Services used
Velthros was our trusted partner in a high-stakes battle for the future of our company. Their strategic insight and relentless execution made all the difference.
Background
A prominent retail brand found itself in the crosshairs of an activist investor who was pushing for a quick sale of the company. The activist’s campaign threatened to undermine a successful multi-year turnaround plan that was just beginning to deliver significant results.
What we did
We worked with the company’s leadership and board to develop a robust defense strategy. We crafted a powerful narrative that showcased the success of the company’s strategy and exposed the short-term thinking of the activist. We then took this message directly to the shareholders, using a combination of direct engagement, media outreach, and targeted digital content to win their support.
Result
The company’s shareholders overwhelmingly backed the board and its strategy in a proxy vote. The activist was defeated, and the company was able to continue with its successful turnaround plan, delivering significant long-term value to its investors.