Children's Place Settles Proxy Fight With Shareholder Group

Children's Place Inc. has agreed to add a former Macy's Inc. executive to its board, settling a proxy fight with a shareholder group as the retailer holds its annual meeting Friday.

Barington Capital Group LP and Macellum Advisors LLC, which together own about 2% of the company, have criticized Children's Place's deteriorating operating performance since 2010, citing negative same-store sales growth and poor merchandising decisions. The firms had been looking to add two retail industry veterans to the Children's Place board.

Children's Place said it has agreed to appoint one of the firms' nominees, former Macy's special projects president Robert L. Mettler, as an independent member of its board after its annual meeting. It has also has committed to adding another mutually agreeable director and will reimburse Macellum and Barington up to $500,000 for out-of-pocket expenses.

Shares, up nearly 20% this year, were little changed in midmorning trading Friday.

Write to Chelsey Dulaney at [e-mail]

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