UniFirst (UNF): Engine Capital Challenges Board Entrenchment and Calls for Sale Process Amid Years of Value Destruction

Engine Capital’s presentation argues that UniFirst’s value destruction stems from entrenched governance, the Croatti family’s control, and a board that refuses to engage credible buyers despite years of weak performance. The deck lays out UniFirst’s long-term underperformance versus Cintas, failed technology investments, deteriorating margins, bloated corporate costs, and cultural decline since Ron Croatti’s passing. It criticizes the dual-class structure, accelerated proxy timing, insider conflicts, and the board’s rejection of multiple takeover offers—including Cintas’ $275/share bid—while offering no credible standalone plan. Engine urges shareholders to send a message by supporting its director nominees, eliminate the dual-class structure, strengthen governance, and initiate a strategic review, arguing that only a sale can unlock the value UniFirst has failed to deliver.