Barington Wants Darden CEO Ousted

Mar 26 2014 | 10:11am ET

Last month, Barington Capital Group sought to strip Darden Restaurants CEO Clarence Otis of his chairman’s title. Now, the activist hedge fund wants Otis to lose both of his jobs.

In a letter to the company, which owns eight restaurant chains, including Red Lobster and Olive Garden, Barington said it has “lost confidence” in Otis and called on Darden to consider a new CEO. It also reiterated that it wants an independent chairman appointed.

Darden and another activist hedge fund, Starboard Value, have blasted Barington’s plans to spin-off Red Lobster, and called for more drastic surgery: Spinning off Red Lobster and Olive Garden together, spinning off its real-estate holdings and cutting costs by up to $150 million.

“Needless to say, the status quo at Darden is unacceptable,” Barington founder James Mitarotonda wrote. The hedge fund manager said he was “deeply concerned by the rapidly deteriorating financial performance” under Otis.

In Depth

Financial Industry Blockchain Consortium R3 To Open-Source Platform Code

Oct 20 2016 | 9:03pm ET

Bitcoin's blockchain technology has spawned a flurry of activity among fintech startups...


U.S. Trust's Beard: The Rapid Growth of the Art Lending Industry

Oct 7 2016 | 10:55pm ET

Alternative investment managers have emerged as some of the most significant art...

Guest Contributor

Hedge Fund Marketing – Tips for Your Initial Sales Meeting

Sep 29 2016 | 5:46pm ET

There are two main goals a hedge fund should have for an initial in-person sales...