Activist Investors Slam GameStop’s Board for Destroying $2.5 Billion in Shareholder Value
Hedge funds seeking to install two directors on the GameStop (NYSE: GME) board of directors allege that current members destroyed $2.5 billion in shareholder value over the past five years while causing the company to become larded with debt.
Hestia Capital Partners and Permit Capital Enterprise Fund own 7.2% of the video game retailer's stock and they allege seven board members are responsible for GameStop taking on $825 million in debt to finance stock buybacks at around $30 a share, all the while selling their own stock for about $48 a share.
Now GameStop is scrambling to refinance some $420 million worth of that debt ahead of its March 2021 maturity date.
Source Fool.com
