Third Point Management, the New York-based hedge fund firm founded by activist investor Daniel Loeb, is planning to mount a board challenge at Bath & Body Works, despite the recent addition of new directors at the beauty product retailer, according to a report by Reuters.

Third Point Management, the New York-based hedge fund firm founded by activist investor Daniel Loeb, is planning to mount a board challenge at Bath & Body Works, despite the recent addition of new directors at the beauty product retailer, according to a report by Reuters.

In a letter to the board of directors published on Wednesday, Third Point, which is one of Bath & Body Works' top five shareholders with a beneficial ownership position of over 6% of the business, raised concerns about the company’s corporate governance and decision-making processes, identifying numerous issues including the board’s oversight of executive compensation, succession planning, capital allocation, investor communication, and strategy for enduring value creation. 

A statement issued by Bath & Body Works late on Wednesday, said: "The Board strongly disagrees with the views expressed in Third Point's letter. It is unfortunate that Third Point has chosen to announce its intent to pursue a costly public proxy fight despite the board’s good faith engagement efforts over the past several months. The board will review and consider Third Point’s proposed nominations in due course once they are received.”

Bath & Body Works is valued at roughly $10 billion.