PetSmart Inc., the largest pet store in the country, is about to be washed and groomed by hedge fund tycoon Barry Rosenstein, the founder and managing partner of multibillion-dollar activist investment firm Jana Partners LLC.
Jana bought nearly 10 percent of PetSmart in July, making it the company’s largest stockholder, and shortly thereafter issued a letter detailing how and why PetSmart has been driven into the ground. Among the shortcomings, according to Jana, are weak e-commerce, lack of product innovation and inadequate cost management.
“We believe that the board bears ultimate responsibility for these failures,” Rosenstein concludes in a July 29 letter to the board.
What needs to happen, Rosenstein said, is that PetSmart needs to be sold, a move that “likely offers... [ MORE ]