Vitacost faces dissident shareholder
This article was originally published in The Tan Sheet
Executive Summary
Boca Raton, Fla.-based Vitacost.com hires a financial advisor to help it identify "potential business combination partners and purchaser candidates." The May 20 announcement came five days before Vitacost's largest shareholder, Great Hill Equity Parnters, proposed four nominees to replace current board members. The shareholder explained the online dietary supplement retailer has experienced "significant erosion in stockholder value" since its 2009 initial public offering, according to a release. Great Hill attributes Vitacost's flat sales growth, high turnover and troubled manufacturing and logistics to "a board comprised of directors with little, if any, public company or Internet, eCommerce or direct marketing experience.