Image from : Christinne Muschi for National Post files
Brewed awakening: Inside the nasty proxy battle for DavidsTea
Source The Financial Post
DavidsTea Inc. chief executive Joel Silver is making an impassioned
pitch for stability as the battle for control of the struggling tea
retailer comes to a head this week.
Despite winning raves over the
years for its range of creative tea products, distinctive packaging and
airy, bright stores, the Montreal-based company has been grappling with
a rapidly shifting consumer marketplace, poor financial results and
all-too-frequent management upheavals.
DavidsTea has recorded
losses in four of its past five fiscal years and posted three years of
declining same-store sales, a key measure of retail stability.
going public in 2015, the retailer’s shares have consistently traded far
less than their US$19 IPO price, and they have been trading in the US$3
to US$4 range while a proxy battle rages between the company’s
co-founder and the current board.