Kerrisdale Capital, a major shareholder for Morgans Hotel Group, wants new directors in charge, just days after CEO Michael Gross stepped down.
In a letter filed today with the U.S. Securities and Exchange Commission, New York-based Kerrisdale wrote to fellow stakeholders that a new board will need to sell the hotel operator because the current directors “do not adequately represent” their interests. The investment firm plans to nominate a fresh slate of directors next year.
The call comes on the heels of a similar request from Ron Burkle, whose Yucaipa Companies holds $230 million in shares of Morgans. He demanded Tuesday that the company find a buyer, as previously reported. Burkle was critical of the takeover of Morgans by Jason Kalisman’s firm OTK Associates. Gross stepped down Monday after not receiving a seat on the new board. [Bloomberg News] — Mark Maurer