Women’s apparel retailer Francesca’s (Houston) is implementing a shareholder rights plan — commonly known as a “poison pill” — after investment firm Cross River Capital (Ridgefield, Conn.) accumulated a 20 percent stake in the company, according to the Houston Business Journal.
A “poison pill” prevents an aggressive takeover of the company from investors acquiring a major stake in the public market. Despite the enactment, it appears that Cross River Capital will not be grandfathered into this plan.
Net sales in the first quarter for the retailer fell 13 percent, and loss from operations widened from $4.5 million to $9.7 million in the prior-year quarter.
In June, Francesca’s announced it would be closing 30 stores.