FEBRUARY 6, 2019 — MORE PAIN EXPECTED AT BARCLAY’S AS ACTIVIST INVESTOR APPROACHED BOARD?
As the night follows the day, activist investors set off a chain reaction of divestments, closures, and reductions-in-force.
It appears that activist Edward Bramson, a partner at Sherborne Investors is petitioning for a position on Barclay’s board of directors and is already speaking publicly about the need to shrink the bank’s footprint in opposition to current management which favors expansion. Look for an expensive proxy fight as the current management maneuvers to keep Bramson in check — possibly buying out his position at a premium (also known as “greenmail.)
Northampton, England-based Barclaycard, the iconic multinational credit card and payment services provider division of Barclay’s Bank, has announced that it will be closing its Wilton, Maine call center and laying off 227 employees.
It is believed that the decision was based on the loss of L.L. Bean’s proprietary-branded credit card business to Citibank and the increasing use of self-help internet-based systems by consumers.
A Barclay’s spokesperson noted that the closure of the Wilton, Maine call center “is aligned with Barclays' global location strategy, which is focused on developing large-scale regional hubs that enable colleagues to work collaboratively and efficiently in order to deliver superior outcomes for customers, clients and shareholders.
The impact on Franklin County will be significant as the company is one of the County’s largest employers.
Just because something bad hasn't happened yet, doesn't mean it won't. It can happen to anyone, anytime, anywhere ... are you now wondering, Am I Next?