04:32 PM EST, 12/30/2024 (MT Newswires) -- Vera Bradley ( VRA ) shares closed significantly higher on Monday, rising almost 9%, after its largest shareholder, Fund 1 Investments, called for the company to explore strategic alternatives, including a potential sale or privatization.

In an open letter to Vera Bradley ( VRA ) executives and board members, Fund 1 Investments said the company is struggling to overcome several internal and external problems, including a failed brand turnaround, negative consumer sentiment and a weak market for smaller publicly traded companies.

Fund 1 said that Vera Bradley ( VRA ) could achieve greater flexibility and cost savings by operating outside the public markets. It stated that "the best option for Vera Bradley ( VRA ) and its shareholders is to commence a strategic alternatives process and pursue opportunities to fix the Company under the umbrella of a larger organization or in the private markets."

Fund 1, which owns 10% of Vera Bradley's ( VRA ) outstanding shares and has economic exposure of 20%, said it was encouraged by recent discussions with company officials, who indicated they are considering all options.