updated - September 23, 2020 Wednesday EDT
Barrington Capital Group has reportedly requested the removal of Darden Restaurants Group CEO Clarence Otis because the hedge fund is worried about the company's finances under Otis, and feel the organization could reportedly use a new face with more expertise according to The Orlando Sentinel.
The firm composed a letter to Darden's directors in addition to encouraging company investors to have a say and vote on the restaurant group's future, and a decision about how to proceed with either selling or distributing parts of Red Lobster.
"As we have said previously, our focus is on doing what is in the best interest of all Darden shareholders and the Board is confident in the actions the Company is taking to deliver on this responsibility," Darden said in a statement The Sentinel reported.
"We have been speaking directly with our shareholders and look forward to continuing that dialogue," The Sentinel reported.
Darden did not hold a previously scheduled monthly meeting with analysts, and investors to discuss how the company can be re-organized. Investor Starboard Value has also pushed for a new approach for the company's future.
Darden announced Dec. 19, that they are making Red Lobster its own separate entity Forbes reported.
The new arrangement will put Red Lobster's 705 restaurants alone from Darden, which has not done well for the company. The organization also has Olive Garden, LongHorn Steakhouse, Bahama Breeze Capital Grille, and Seasons 52 Forbes reported.
The group also plans to halt expansion of Olive Garden, in order to bring in more earnings for shareholders, and slash its capital spending $100 million a year. LongHorn Steakhouse is also expected to stay where it is.
Darden has been pushing ahead with separating from Red Lobster, and its plans to re-focus, and re-enable both sides to become more creative following an announcement March 3.
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