Activist investor Barington Capital Group is calling for a leadership overhaul at Matthews International Corp, a leading coffin manufacturer, and wants to name three new directors to the company’s board as part of a bid to oust long-serving CEO Joseph Bartolacci.

In a letter sent Tuesday, the hedge fund's CEO James Mitarotonda criticised Bartolacci’s 18-year tenure, claiming it has led to a "deterioration" of the company’s balance sheet. Barington, which owns a 2% stake in Matthews, urged the company to initiate a search for new leadership.

"We do not believe he is the right leader to unlock Matthews’ significant value potential," Mitarotonda stated. However, the activist fund did not disclose the names of its board nominees.

Matthews International has defended its leadership and strategy, emphasising its commitment to shareholder interests. A company spokesperson stated: “As the evaluation of strategic alternatives underscores, the board and management team will continue to take actions that drive long-term value creation.”

Barington has suggested Matthews concentrate on its most profitable business segment, which produces products for cemeteries, funeral homes, and crematories. The hedge fund also proposed divesting underperforming segments, such as the packaging brand business, to sharpen its strategic focus.

Barington has held a stake in Matthews since 2022 and has served as a consultant to the company for the past two years.

In November, Matthews reported stronger-than-expected fourth-quarter results, driving its stock up by as much as 24%—the largest intraday gain in the company’s history. Despite this, the stock remains down approximately 18.5% year-to-date, giving the company a market capitalisation of about $914m.

The company is working with JPMorgan Chase to evaluate strategic options for its industrial technologies division.