Thursday, August 30, 2007

Dillard's sucks

Posted By on Thu, Aug 30, 2007 at 1:36 PM

That headline is, I think, a fair summary of the opinion of company management expressed in a tough letter sent to the company's board by a highly disaffected owner of Dillard's shares. The letter notes that the company has lost 50 percent of its market value -- from $3.8 billion to $1.9 billion -- since William Dillard II took over in 1998, despite $5 billion in investments and acquisitions. This led one analyst to conclude the company is a "wasting asset." And there are nuggets like this:

It appears to us that William T. Dillard, II has established an insular culture at Dillard's which includes a mind-set that the Company need only be responsive to the input, interests and concerns of the Dillard family. We are keenly aware of the reclusive nature of the Dillard's management team, which routinely avoids meeting with stockholders and does not hold quarterly earnings conference calls despite the fact that almost all other companies in the S&P 500 do so.(1) There are also numerous accounts of the Company refusing to speak with analysts and reporters. As Luisa Kross has stated in a past Forbes article, "The family answers to no one, running the company as if it were private."

Problem for the investor, of course, is that the corporate structure makes it difficult to do anything about the situation but bitch. However, I should add that there's plenty of speculation that the letter-writing campaign is preparatory to a stockholders' lawsuit.

ALSO: Edna, an old Dillard's hand, has a long and interesting commentary on matildaintherock.


Comments (37)

Showing 1-37 of 37

Add a comment

Subscribe to this thread:
Showing 1-37 of 37

Add a comment

More by Max Brantley

  • Fort Smith mosque vandalized

    Fort Smith's Al Salam mosque was vandalized Thursday morning.
    • Oct 20, 2016
  • The open line and headlines

    Here's the Thursday open line and mid-afternoon news roundup.
    • Oct 20, 2016
  • Kochs spread money around Arkansas

    The Koch Industries PAC spread a lot of money around in September, including significant sums in state legislative races around the country. All politics is local when you have a big polluting industry to look after.
    • Oct 20, 2016
  • More »

Readers also liked…

  • Foster family disputes key statements from Justin Harris

    Craig and Cheryl Hart were the foster parents of the two sisters who were adopted by Rep. Justin Harris and his wife Marsha and later "rehomed." The Harts say that the adoption was allowed to proceed over the objections of the foster parents and local DHS staff due to pressure exerted by Cecile Blucker, head of the Division of Children and Family Services, on behalf of Justin Harris.
    • Mar 7, 2015
  • Mary Steenburgen adds voice against gay discrimination law

    Mary Steenburgen, the Arkansas native actress, has added her voice to those opposing HB 1228, the bill aimed at preserving legal discrimination against gay people under the pretext of religious freedom. It would create untold other complications for all sorts of government activities to give people a religious excuse to avoid the law.
    • Mar 3, 2015
  • Rep. Nate Bell blasts adoption story before seeing it; 'rehoming' bill introduced

    Response to our story about rehoming and adoption has been overwhelmingly positive, with one exception. Rep. Nate Bell (R-Mena) has informed me that writing this story makes me the predator and Justin Harris the victim. I'm hellbound, apparently.
    • Mar 4, 2015

Most Shared

Most Viewed

Most Recent Comments



© 2016 Arkansas Times | 201 East Markham, Suite 200, Little Rock, AR 72201
Powered by Foundation