Cenveo Shareholders Press for Board LeadershipLarge shareholders of print communications provider Cenveo Inc. have called a special meeting in a bid to take over the company's board of directors, whom they accused of poorly managing the company.
Burton Capital Management Inc. and Goodwood Inc. called last week for the meeting to nominate Robert Burton Sr. and six of his supporters to the board. Burton, who is president of Burton Capital Management, also wants the board to name him chairman and CEO of the company.
In a statement, the two shareholder companies said that the current board had "failed to make decisions necessary to improve Cenveo's performance and enhance shareholder value." Between Jan. 1 and April 7, Cenveo shares lost 53 percent of their value, they said.
In a separate statement, Cenveo said that the meeting had been called properly and that it would set up the meeting as requested. Cenveo is "aggressively exploring all strategic alternatives" and "cautions its shareholders to be wary of any shareholder group that seeks to short-circuit" that process, the company said.
One alternative the company is exploring is a sale. According to Cenveo, Burton was invited to participate in the competitive search process for the CEO job but has declined to participate.
Scott Hovanyetz covers telemarketing, production and printing and direct response TV marketing for DM News and DMNews.com. To keep up with the latest developments in these areas, subscribe to our daily and weekly e-mail newsletters by visiting www.dmnews.com/newsletters