Activist hedge fund Jana Partners has bought up nearly 10% of PetSmart Inc.’s shares, demanding that the retailer begin looking for a buyer.
The New York-based hedge fund took a 9.9% stake in PetSmart, making it the troubled company’s largest shareholder. The firm said it would hold talks with the company’s management, as well as with fellow shareholders and potential acquirers.
Jana said it wished to discuss a “significant return of capital to shareholders.”
“PetSmart welcomes open communications with its shareholders and values constructive input toward the goal of enhancing shareholder value,” the company said.