Article Date 11/06/2018

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.

Since 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.

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