Valinor Management, the hedge fund headed by David Gallo, significantly boosted its stockholding in dELiA*s, Inc. (NASDAQ:DLIA) based on its latest 13D filing with the Securities and Exchange Commission (SEC).
The filing showed that Valinor Management now owns 14,376,679 shares or an 18.7% stake of dELiA*s, Inc. (NASDAQ:DLIA), which means it purchased an additional 7,805,250 shares. The hedge fund previously held 6,571,429 shares in the fourth quarter of 2013.
Valinor board nomination
Valinor Management indicated in the filing that it will nominate Seth Cohen to the board of directors of dELiA*s, Inc. (NASDAQ:DLIA) as part of its securities purchase agreement with the company. Cohen is a designee of the hedge fund approved by dELiA*s CEO.
The hedge fund also indicated that it still has the right to nominate two executives to the board of directors of dELiA*s, Inc. (NASDAQ:DLIA) in accordance with the NASDAQ Rule 5640. It also agreed to vote for the election of the director nominated by Flatbush Watermill LLC.
Furthermore, Valinor Management said it will evaluate its investment in the company on a continual basis, and it has no other plans or proposal at the time of the filing with the SEC,
dELiA*s, Inc. (NASDAQ:DLIA) is a retailer of lifestyle brands for teenage girls and young women. The company generates revenue by selling its products through direct mail catalogs.
Previous investors
Whitney Tilson’s T2 Partners Management LP previously owned a huge stake in dELiA*s, Inc. (NASDAQ:DLIA). During the third quarter, last year Tilson’s firm held 3,797,319 shares, which accounts 7.25% of its equity portfolio. The fund sold out its entire stake in the company during the fourth quarter.
Glenhill Advisors, the hedge fund headed by Glenn J. Krevlin, held approximately 3.6 million shares in the retailer during the third quarter, and eventually sold all its stockholding in the following quarter.
The stock price of dELiA*s, Inc. (NASDAQ:DLIA) is trading around $1.10 per share, down by more than 8% at the time of this writing, 2:05 PM in New York.
