Lenox Group, Inc. (NYSE:LNX) shares moved up $0.16, or 3.16%, to $5.23 today after the Clinton Group expressing its concern over previous management and the board's performance in guiding the company. As the second largest shareholder, the hedge fund urged the company to consult shareholders with respect to any material changes at the company, including (1) modification of the company's engagement of Carl Marks Advisory Group, (2) offers of employment for senior management positions, (3) capital structure and financing issues, and (4) any strategic transactions potentially being contemplated by the company. The Clinton Group also offered to help facilitate the company's turnaround and exploration of strategic alternatives by providing three director candidates for shareholder consideration. The Schedule 13D/A filing showed The Clinton Group holding a 10.9% stake through two of its Cayman Island-based funds. This large stake would give them significant leverage in any conflicts or negotiations with the company in the future. Notably, John Morgan and his affiliates (7% holders in the company) expressed similar dissatisfaction with management back in September of last year. This makes LNX a stock worth watching!

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