Activist Investor Buys Bath & Body Works Stake to Push for Company Sale

2026-09-11 companies

New York, Friday, 11 September 2026.
Activist firm Barington Capital acquired over one million shares in Bath & Body Works, urging a full sale after the retailer’s stock plummeted roughly 78% since its 2021 corporate split.

Activist Investor Announces Stake and Sale Push

On Thursday, September 10, 2026, reports emerged that Barington Capital Group has acquired a significant position in Bath & Body Works Inc. [2]. The activist investor is actively urging the retailer’s board to explore a full sale of the company [1]. Barington Chief Executive Officer James Mitarotonda disclosed a stake of approximately one million shares in an interview [2]. This move marks a renewed intervention by the firm, which previously targeted the company in 2019 under its former identity, L Brands [2][3]. Bloomberg News reported on Thursday, citing people familiar with the matter, that the firm is pushing the company to explore a sale [4].

Market Reaction and Valuation Concerns

Following the news, shares of Bath & Body Works advanced 2.3% in extended trading on September 10, 2026 [2][6]. Barington contends that persistent leadership turnover has severely depressed the retailer’s valuation despite strong cash flow generation [2]. The firm argues that the company is undervalued and should retain advisers to shop itself [3]. Market data indicates that since spinning off Victoria’s Secret and rebranding in 2021, Bath & Body Works has seen its stock decline roughly 78% [2][5].

Operational Performance and Store Footprint

Alongside the stock decline, net income has dropped approximately 50% according to compiled market data [2][5]. Current Chief Executive Officer Daniel Heaf, who joined last year from Nike Inc., is implementing a modernized strategy aimed at capturing younger demographics [2]. In August, the retailer guided to a slightly slower rate of annual sales decline and reported its first direct net sales growth since 2021 [5]. The company operates around 1,900 stores across the US and Canada, with a further 550 or so internationally, totaling 2450 locations globally [5].

Historical Precedent and Future Steps

Barington plans to formalize its demands in a forthcoming letter to the board and is evaluating a potential proxy contest for board representation [2]. James Mitarotonda founded Barington in 2000 and has a track record that includes interventions at Macy’s Inc., Chico’s FAS Inc., and The Children’s Place Inc. [2][5]. While acknowledging the current management’s plan is well-reasoned, Barington maintains that management must act far more decisively on capital allocation [2]. A spokesperson for Bath & Body Works stated the company remains committed to evaluating all avenues to enhance shareholder value [2].

Sources

Corporate Restructuring Activist Investor