Barington Capital Group, the activist investor with a long track record in retail, has taken another stake in Bath & Body Works Inc. and is recommending the personal-care and fragrance store chain to explore a sale. The Columbus, Ohio-based retailer is undervalued, has been hampered by unstable management and should retain advisers to shop itself, according to Barington CEO James Mitarotonda, who led a campaign against the company in 2019, when it was called L Brands.

"We believe changes are needed at this company," Mitarotonda said. "Given the market leadership nature of the company, the brand value, the cash flow, there should be considerable interest." That would include strong interest from private equity, he said. Barington, which has a position of more than one million shares, also wants Bath & Body Works to boost revenue and improve its stock price by repurchasing shares.

Barington plans to publish a letter to the board in the coming weeks and is looking into seeking board representation. A representative for Bath & Body Works said the company regularly engages with shareholders and values their perspectives.

Bath & Body Works, with about 1,900 stores in the US and Canada and 550 internationally, has been working at a turnaround. Shares have fallen about 78% since 2021 while net income has fallen by about 50%. Mitarotonda blames serial management changes over the past five years for hurting sales and the brand. CEO Daniel Heaf has unveiled a "Consumer First Formula" to win younger shoppers. "We do think that Daniel Heaf's plan is thoughtful and well-reasoned... but they should now be very aggressive in buying back shares," Mitarotonda said.