Starboard hires Michaels CFO as adviser

An activist investment firm targeting Darden Restaurants has hired an executive with the Michaels craft chain who earlier worked at another restaurant company, Brinker International.

Starboard Value said in filings with the U.S. Securities and Exchange Commission on Tuesday that it has hired Charles Sonsteby, chief financial officer and chief administrative officer of Michaels Stores Inc. He will be an adviser to Starboard.

Sonsteby is also the former chief financial officer and executive vice president of Dallas-based Brinker, which owns Chili’s and Maggiano’s Little Italy.

Starboard is trying to halt Orlando-based Darden’s planned spinoff or sale of Red Lobster. It wants to organize a special meeting so that stockholders can vote on a nonbinding resolution urging Darden to hold off on plans.

Starboard also has argued that it could try to get new directors elected to Darden’s board if the company continues with Red Lobster plans.

A few days after Darden announced its intentions for Red Lobster, Starboard announced that it had acquired 5.5 percent of Darden stock.

Starboard wants a more dramatic breakup of Darden, which also owns Olive Garden. In addition, Starboard wants Darden to monetize its restaurant real estate.

Starboard entered into an agreement with Sonsteby on Feb. 28 and is paying him $50,000. Sonsteby is using the proceeds to buy Darden stock.

Starboard decided to retain Sonsteby because of his “unique skill set, broad restaurant industry experience and extensive restaurant industry knowledge,” the SEC filing said.

Last month, Starboard hired former Olive Garden president Brad Blum as an adviser. Blum was considered by many a logical choice to become Darden’s next chief executive officer after turning around Olive Garden in the1990s, but he left the company for Burger King in 2002.