Retailer makes move to block crisis-led hostile takeover bid

FORT MYERS — Chico’s FAS, one of the largest employers in Lee County, has adopted a short-term shareholder rights plan, commonly known as a poison pill.

A poison pill is a defensive strategy designed to avoid a hostile takeover when a company’s shares are down. The plan usually provides existing shareholders the right to purchase additional shares at a discount, which dilutes the value to an outside investor.

In Chico’s case, company shares have dropped more than 73% year-to-date, against the S&P 500 index drop of 21.8%, according to MarketWatch. Shares closed April 6 at $1.16, after trading at around $4 a share at the end of February.