Syms may soon be forced to educate at least one of its disgruntled shareholders.
A New Jersey judge has ordered the off-price clothing chain — whose slogan is “an educated consumer is our best customer” — to turn over confidential books and records to a hedge fund that has raised questions about possible mismanagement at the company.
The judge ruled yesterday that hedge fund Esopus Creek Advisors, which sued last month to gain access to the documents, has produced “some credible evidence of potential mismanagement.”
People close to the situation said Syms is expected to appeal the ruling, which would compel it to turn over minutes of board discussions of key strategic decisions, including the company’s 2009 acquisition of Filene’s Basement and its hiring this spring of investment bank Rothschild to explore a possible sale.
“We are disappointed and disagree strongly with the decision,” a Syms spokeswoman said. “We will continue to work with the courts.”