Schoenfeld Takes Aim at Saks

Hope is not enough for a Saks(SKS Quote) turnaround -- or such is the argument being made by P. Schoenfeld Asset Management, which owns about 1.5% of the company's total shares.

The group urged shareholders in a proxy letter to withhold their support for the re-election of C. Warren Neels to the company's board, to vote to end the company's staggered board and to approve a proposal to implement majority voting for board member elections, as the department store suffers its worst period of share performance in a decade.

Saks has consistently underperformed its competitors, including Neiman Marcus, with operating margins far below the industry average, the group wrote. And while the luxury market is tanking, P. Schoenfeld said the weak performance is not only due to the souring economy. ...