Avon shareholders call for sale, sending shares higher

Source: Avon

A group of shareholders of Avon Products led by activist investor Shah Capital has called for the cosmetics maker to explore strategic alternatives, including a possible sale.

Avon's shares were up nearly 6 percent at $2.57 in premarket trading on Monday.

The shareholder group, which also includes Barington Capital Group and NuOrion Partners, said it was "extremely disappointed" with falling price performance and leadership of the company.

Avon's inability to improve long-term performance and hire a new chief executive gives the shareholders no reason to wait for a turnaround from a board that has overseen a tremendous destruction of shareholder value.

Avon's CEO Sheri McCoy said last August she would step down in March 2018.