By Connor Hart
Vera Bradley's board unanimously approved the adoption of a limited duration shareholder rights plan.
The plan provides for the issuance of one right for each outstanding share of the company's common stock, exercisable if a person, entity or group acquires beneficial ownership of 15% or more of the company's outstanding common stock in a transaction not approved by the board, the company said on Friday.
The purveyor of quilted bags and accessories said that the plan is intended to position the board to fulfill its duties, and ensure that it has sufficient time to make informed judgments in the best interests of the company and its shareholders.
Under the plan, which is set to expire Oct. 11, 2025, each right would allow its holder to buy at the exercise price additional shares of common stock having a market value equal to twice the exercise price, the company said.
The poison pill comes as macroeconomic headwinds continue to dampen the company's turnaround efforts. In its most recent quarter, Vera Bradley lowered its outlook after posting lower profit and sales, dragged down by continued pressure on consumers.
Write to Connor Hart at connor.hart@wsj.com
(END) Dow Jones Newswires
October 11, 2024 16:27 ET (20:27 GMT)
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