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In the wake of Legion Partners' call for Guess directors to boot the jeans company's co-founders, bankers say there's an outside chance the campaign could lead to a sale.

Yes, but: The bankers also pointed out that the co-founders, brothers Paul and Maurice Marciano, own a huge stake and will be difficult to dislodge.

 They own a combined 38.4% of the company, the latest proxy says.

Of note: Two apparel bankers who spoke to me on background said this Legion attack could lead to a Guess sales process, though one of the bankers stressed that this falls in the "outside chance" category. 

What they're saying: I spoke to another person (not a banker) with direct knowledge of the Legion-Guess situation who said Legion's pressure on the company could end up like what happened at Perry Ellis.

In that Legion campaign, the hedge fund pushed Perry Ellis' board to oust founder George Feldenkreis.

In response, Feldenkreis took the company private in 2018 to regain power.

The person with direct knowledge of the matter ruled out a Legion proxy contest given the size of the Marciano brothers' stake. 

This source added that Legion's aim is meant to force the company to become a better operator and to attract more outside investors. 

The other side: The company referred my question about a potential sale to its previous statement in response to Legion. 

In that response, the company emphasized the progress it's made in turning the business around.

Guess also said that the investor was resurfacing allegations already made public.

"We will continue to engage with Legion Partners and evaluate all opportunities to create value for all shareholders," Guess said in that statement. 

Zoom in: According to Legion's letter, the insurance carrier that underwrites the company recently sued to absolve itself of claims related to Paul Marciano because of an "alleged 'pattern' of 'wrongful acts.'"

Between the lines: Both sides agree the company is making progress on its turnaround under CEO Carlos Alberini.

The bottom line: Keep a close eye on Guess' independent directors who will have to weigh the Legion allegations against the company's founders.

1 big thing: The question of a Guess sale

Illustration of the Guess? logo but it says "Sale" instead of "Guess."

Toolmaker Stanley Black & Decker is seeking a buyer for its Stanley Access Technologies unit, a sale that could fetch up to $500 million, Bloomberg reports.

Why it's the BFD: The unit, which makes specialized doors (ICU units as an example), is expected to attract the interest of peers and private equity firms, per Bloomberg. 

Details: CEO Jim Loree has been paring the company's portfolio to focus on its core products. 

2. The BFD: Stanley Black & Decker to offload unit

Close-up of a tool handle in black and yellow featuring the Stanley logo.

Photo: Smith Collection/Gado/Getty Images

Some sad but retail-related reading as you head off into the weekend, per The Guardian. 

The issues facing the United Kingdom's John Lewis store are similar to those across the pond.

Nearly 60,000 bees stolen from US supermarket's HQ

Giant Company's field of bees was robbed in Pennsylvania.

3. Retail therapy: U.K. store demise, and a bee caper

Illustration of Sigmund Freud holding a collection of shopping bags.

Clayton, Dubilier & Rice may offer to buy the 51% stake it doesn’t already hold in Cornerstone Building Brands (NYSE: CNR), per Bloomberg. The Cary, N.C.-based company has a $2.1b market cap. http://axios.link/zseQ

Sonic Milling Systems, a Canadian developer of food-processing techniques for plant-based ingredients, is being acquired by Regina, Saskatchewan-based Above Food Corp. Terms of the deal were not disclosed. http://axios.link/0rRk

Everything Legendary, a maker of plant-based food specializing in flavor, raised a $6m Series A led by CircleUp Growth Partners. General Mills’ venture arm 301 Inc. and billionaire investor Mark Cuban also participated. Record executive Russell Simmons joins the company as a senior adviser. http://axios.link/ScLn

Ingredion, a Westchester, Ill.-based ingredient supplier, invested in InnovoPro, a food tech company that specializes in chickpeas. Terms were not disclosed. http://axios.link/UvR8

LandscapeHub, a Chicago-based plant and landscaping materials marketplace, raised $9m in Series A funding. Klaff Realty and Hyde Park Venture Partners co-led, and were joined by Open Prairie Rural Opportunities Fund, Concentric Equity Partners and Great Oaks VC. http://axios.link/faqq

Big Mama's and Papa's Pizzeria, a Los Angeles-based chain, struck a master franchise deal with Canada-based The Patel Group to open 52 locations in Ontario. http://axios.link/zuj0

4. Retail transactions

Mark Ramage joins restaurateur and television personality Guy Fieri's rapidly growing Chicken Guy concept as VP of franchise sales. He previously worked in similar roles at chains such as Smashburger. chickenguy.com

B. Quick Chadwick moves into the role of CMO from VP of marketing at organic juice bar chain Clean Juice. http://axios.link/qFuC

5. It's Personnel

Good morning, Retail Readers, and a happy Friday to you!

Situational awareness: Under Armour shares are down today after the company cited an uncertain outlook caused by supply chain constraints. 

🏈 I'll share my view of the Super Bowl matchup at the bottom of this newsletter but warning, it's from deep inside the heart of this Missourian (think: Kroenke and Icahn). 

🏈  OK, let me say it straight: There are two very hated people in St. Louis: Stan Kroenke and Carl Icahn. 

Kroenke for moving the Rams, Icahn for destroying TWA. So even though the Bengals beat my beloved Chiefs, I think you know which team I'll be rooting for. 

Finally, don't forget to share this link and tell people to sign up for this newsletter. 

February 11, 2022

1 big thing: The question of a Guess sale