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An activist wants to add directors to Potbelly’s board

Potbelly will consider input from the Vann A. Avedisian Trust regarding the nomination of potential directors at the chain’s annual shareholders meeting.
Photograph: Shutterstock

Potbelly Sandwich Shop, which is attracting the attention of a number of activist investors, is under some new pressure.

The struggling sandwich chain said it will consider input from an activist trust regarding the nomination of directors to its board, in advance of the chain’s annual meeting.

Potbelly has been engaged in discussions with the Vann A. Avedisian Trust, which includes Intrinsic Investment Holdings, regarding “management and corporate governance,” according to a Securities and Exchange Commission filing.

The trust has until March 1 to notify the company about potential director nominations.

Chicago-based Potbelly is slated to announce its Q4 earnings Tuesday.

Late last year, activist investor Ancora Advisors revealed it had acquired more shares of the company’s stock, upping its investment to more than 5% of the company.

Last month, New Jersey-based investment group 180 Degree Capital Corp. disclosed its 6% stake in the brand, noting its plans to discuss “operational and strategic matters” with Potbelly management.

Potbelly, which has 470 units, has seen massive traffic, sales and stock price declines recently, which has forced it to close underperforming stores and halt new unit growth.

 

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