VF Corp is now facing the scrutiny of activist investor Legion Partners Asset Management, who allegedly silently invested a stake in the Denver-based Vans-owner and is pressing the conglomerate to consider divesting certain brands, including Timberland, according to a Bloomberg article.

This move by Legion Partners comes in the wake of a similar push by Engaged Capital, which publicly disclosed a substantial stake in VF Corp and urged the conglomerate to enlist advisors for reviewing non-core divestitures and commit to refraining from further acquisitions.

Both investors are seeking significant changes within the company. The exact size of Legion Partners’ position within the apparel company remains undisclosed.

The article said VF Corp’s stock experienced a 1.1% increase, trading at $17.68 on 24 October at 9:36 a.m. in New York.

Bloomberg noted this improvement offers VF Corp a market valuation of approximately $6.9bn, partially reversing a challenging year for the company during which it grappled with supply chain disruptions and questions concerning the relevance of its brand portfolio.

Bloomberg adds that the VF Corp stock has witnessed a 36% drop in value over the past year.

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By GlobalData

A spokesperson for VF Corp tells Just Style: “We value the views of our shareholders and seek to maintain an open dialogue with the investment community. VF has globally recognised and iconic brands and best-in-class talent.

“VF’s Board and leadership team, including our recently appointed CEO Bracken Darrell, are taking immediate and decisive actions to strengthen the company’s position and return VF to strong, sustainable, and profitable growth in the interests of all our shareholders.”

Legion Partners had not responded directly to Just Style’s request to comment at the time of going to press.

An interesting development in the fashion conglomerate’s corporate governance is the appointment of former NIKE veteran An Claes as its new vice president of supply chain operations for the Europe, Middle-East, and Africa (EMEA) region.

Claes also became a member of VF’s European senior leadership team, representing all aspects of the supply chain matrix.

Earlier this year, VF Corp announced its intent to explore strategic alternatives for its Global Packs business, which comprises renowned brands such as Kipling, Eastpak, and Jansport.

Bloomberg reported that Legion Partners has been actively advocating for the sale of cybersecurity technology company, OneSpan Inc. in 2023 and exerting pressure on US advertising firm Clear Channel Outdoor Holdings Inc. to expedite asset sales.