Two activist investors have written to department store operator Dillard's Inc (DDS.N) urging a change in share structure, seeking thereby to dilute management's control of the board of directors.

Barington Capital Group LP and Clinton Group Inc, argue that the right of class B shareholders to elect two-thirds of the board puts power in the hands of senior executives of Dillard's through their ownership of W.D. Co, which itself owns about 99.4 percent of class B Shares.
In the letter on Thursday, filed with the Securities and Exchange Commission, the hedge funds asked the board to remove the dual share structure, under which it says, the ""company and its public shareholders are being penalized.""
The hedge funds, which together own 5.67 percent of Dillard's class A stock, asked for a committee of independent directors to be formed to consider their proposal.
In April, Dillard's, which sells everything from clothes to Cuisinart appliances, avoided a proxy fight with the two funds by agreeing to nominate four candidates for election as directors.
Barington Capital has been calling on the Little Rock, Arkansas, retailer to take steps to improve financial results and governance practices since at least June 2007.
The mall-based retailer has been seeing its financial results steadily weaken. Monthly same-store sales have fallen for much of the past year. Dillard's, Barington Capital and Clinton Group could not be immediately reached for comment.
(Source: Reuters)