Marcato threatens to replace Deckers' board in case of no sale

June 27 (Reuters) - Activist investor Marcato Capital Management said on Tuesday it will seek to replace Deckers Outdoor Corp's board if the footwear maker's review of strategic alternatives did not result in a sale of the company.

Marcato, which said it owns a 6 percent stake in Deckers' shares, will nominate a slate of director candidates to replace the company's entire board, the hedge fund warned in a letter.

Deckers, the maker of UGG boots and apparel, said in April it was exploring a sale as part of a review of strategic options.

Investment management firm Red Mountain Capital Partners LLC in March pushed Deckers for a sale, saying its stock had underperformed due to management's "consistently poor capital allocation decisions."

Deckers' shares were up 1.4 percent at $67.90 on Tuesday in afternoon trading.

(Reporting by Sruthi Ramakrishnan in Bengaluru; Edited by Martina D'Couto)