MONTREAL - Activist investor George Armoyan says the loss-making 56-unit Bikini Village Inc. swimsuit chain can expand into Ontario and the Maritimes with a modest infusion of new capital and he will work with management to make a turnaround.
Armoyan, via his Clarke Inc. holding company, owns about 13 per cent of Bikini Village, a survivor of the 2005 Les Ailes de la Mode failure, acquired at an average 10 cents a share. With other institutional investors, he controls more than a third of the stock, he said Thursday.
"We've proposed two new directors, both representing Clarke, and we want to work with the board to take Bikini Village national and create value for all shareholders, like we're doing at furniture-maker Shermag. It has an excellent brand but it's too small. We don't like owning more than 20 per cent of any company."The Bikini Village board has proposed two new directors, including chief executive officer Yves Simard and a representative of Jolina Capital Inc., the private holding company of cheese baron Lino Saputo Sr. A special meeting of shareholders is due May 10 to approve the addition of two new directors.
Armoyan said he has tried to meet with management several times to discuss Bikini Village's future.