Engine Capital demands complete board overhaul at Parkland

Parkland, a Canadian fuel retailer, is facing renewed pressure from Engine Capital LP, an activist hedge fund. Engine Capital, which owns a 2.5 percent stake in Parkland, has called for a complete change in the company's board of directors. The hedge fund believes the current board cannot be trusted to manage a strategic review of the company, which could lead to a potential sale. Engine Capital pointed to Parkland's failure to meet 2024 earnings targets. It also criticized the board for not holding management accountable for the company's performance. In the past, Parkland rejected suggestions from Engine Capital to consider selling the company. Parkland operates gas stations and convenience stores under various brands, such as On the Run and Chevron. It recently extended an invitation to Simpson Oil, which owns nearly 20 percent of Parkland's shares, to rejoin its board for the strategic review process. Simpson Oil has argued for changes in Parkland’s strategy and won a legal dispute over its activism against the company. Broader economic concerns are also affecting Parkland. U.S. threats of tariffs on Canadian goods, including energy, add uncertainty to the company's situation. While tariffs could lower costs at Parkland’s Burnaby Refinery, an overall economic slowdown might lead to reduced demand for its products. This complex environment may hinder Parkland's strategic review plans, especially as corporate dealmaking is expected to slow down in 2025.