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Financing

Dave & Buster’s enters into cooperation agreement with activist

The struggling eatertainment chain has appointed a partner of investment group Hill Path Capital to its board.
Photograph: Shutterstock

Dave & Buster’s Entertainment, Inc. appointed a partner of activist investor group Hill Path Capital to its board late last month, according to a Securities and Exchange Commission filing.

James Chambers, a Hill Path Capital partner, will serve on committees overseeing audit, finance and compensation for Dave & Buster’s, according to the filing.

The appointment is part of the struggling eatertainment chain’s new cooperation agreement with Hill Path. As part of the agreement, Hill Path said it would vote in favor of Dave & Buster’s director nominees and would support the appointment of an independent auditor at the board’s recommendation at the 2021 Annual Meeting.

New York-based Hill Path is one of Dave & Buster’s largest stockholders. The firm owned 9.3% of the Dallas-based company, according to an SEC filing in September.

Hill Path has also taken an activist position in casual-dining chain J. Alexander’s, reporting a 6% stake in the brand in October.

The pandemic has hit Dave & Buster’s hard. The chain reported its same-store sales fell 66% for the quarter ended Nov. 1 and that its store reopenings in California and New York continue to be delayed because of the virus.

The chain is rolling out a pared-down menu, adding tablets and kiosks and recently launched third-party delivery. It is also looking to create virtual brands that would be run out of its kitchens.

 

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