By Svea Herbst-Bayliss
(Reuters) -Hedge funds Macellum Advisors and Ancora Advisors have lost their bid for board seats at supermarket operator SpartanNash Co, according to two sources familiar with the matter.
The two hedge funds, which own 4.5% of the company, were trying to replace three of the company’s nine board members, arguing the company needed to improve its competitiveness and consider a full or partial sale.
Spokespeople for the hedge funds and the company did not immediately respond to requests for comments.
The hedge funds received some support from proxy advisory firm Institutional Shareholder Services, which recommended that investors support two of the hedge funds’ three nominees, saying fresh retail and operational experience would be important on the board.
Macellum and Ancora were hoping to replace the chairman, audit committee chair and nominating and governance committee chair.
SpartanNash, which is based in Byron Center, Michigan, and has a market value of $1.2 billion, owns 145 supermarkets, primarily under the banners of Family Fare, Martin’s Super Markets and D&W Fresh Market, and operates commissaries for the U.S. military.
SpartanNash refreshed its board earlier this year after appointing Tony Sarsam as its CEO in 2020.
(Reporting by Svea Herbst-Bayliss; Writing by Paritosh BansalEditing by Nick Zieminski)