NEW YORK, July 1 (Reuters) - Barington Capital Group on

Tuesday urged casket maker Matthews International ( MATW ) to

fix its business and immediately invite the activist investor

onto its board, or possibly face another clash with the group

next year.

Barington criticized Matthews' business portfolio, capital

allocation, lagging stock price, and long-serving CEO in a

letter seen by Reuters.

The investor heaped fresh pressure on Matthews by

underscoring the same issues that formed the backbone of its

high-profile fight for three seats, which it lost, earlier this

year.

Barington wants the company, a conglomerate which has

technology-focused businesses plus products for burying the

dead, to add its director candidates to the board now and not

"wait for the 2026 annual meeting."

A representative for the company did not have an immediate

comment on Barington's letter.

Matthews stock price dropped 12% in the first six months of

the year, the letter says, when the broader S&P 500 index gained

4.4% and Matthews' peers gained 3.3% on average.

Barington chief executive James Mitarotonda blamed Matthews

CEO Joe Bartolacci "for this persistent pattern of

underperformance" and wrote that he and other Barington board

candidates could help fix the company now.

"Our participation is essential to execute the fundamental

changes necessary to create long-term value," the letter said,

warning if no board seats are offered "we remain prepared to

pursue all available alternatives to protect our investment."

This suggests Barington may launch a second campaign for

change at Matthews next year after shareholders in February

blocked the activist by re-electing all company directors.

Barington, which had support from three proxy advisory firms

that guide how shareholders vote, bought more Matthews stock

after its defeat, raising its stake in the company to roughly 3%

from 2%.