Bruce Galloway - Contrarian Value Activist

A new name appears on Chicago Rivet’s Shareholder list

We first came across Bruce Galloway and Galloway Capital Partners (GCP) while tracking the fastener manufacturer Chicago Rivet & Machine Co (CVR), in which they recently disclosed a 6.45% stake. This piece is part of our “Major Shareholder” portrait series – which features research on investors with the potential to influence the outcome of deep value situations.

Galloway Capital Discloses 6.45% Stake and Activist Intent

Chicago Rivet & Machine Co (CVR) disclosed on December 23 that Galloway Capital Partners (GCP), together with affiliated entities and its managing member Bruce Galloway, has ownership of 6.45% of the NOSH, following open-market purchases executed between June 2024 and December 2025 at an average price of $11.66 per share.

GCP asserts that the shares are materially undervalued relative to the intrinsic earnings power and strategic positioning, pointing to potential sustainable earnings of $4-5 per share and structurally improving competitive dynamics for domestic manufacturers.

GCP has indicated an intention to engage actively with the board and management and may pursue changes related to strategy, corporate governance, capital allocation, and investor relations; notably, it has already sent a letter to management advocating a more proactive approach to capital markets communication and the engagement of an experienced Wall Street advisor as a catalyst to unlock shareholder value.

Background

GCP has positioned themselves as value-oriented activists. The firm targets small- and mid-cap companies it believes are materially undervalued, then seeks to influence outcomes through shareholder letters, direct engagement with management and boards, and, where necessary, board nominations to catalyze change and drive equity re-ratings. These initiatives typically span financial actions (e.g., deleveraging, capital returns), operational restructuring (unit closures, asset divestitures), strategic transactions (advocating sales, mergers, or breakups), and enhanced governance and investor communication (board refreshment, clearer IR strategy).

Galloway’s track record across situations such as WW International, Noodles & Company, Regis Corporation, Ampco-Pittsburgh Corporation, and Global Crossing Airlines demonstrates a methodology to acquire shares at depressed valuations, engage actively, and work to surface intrinsic value. This is also the role Galloway is now assuming in the case of CVR.

More on GCP’s MO

GCP, led by Bruce Galloway, is an investment firm focused on acquiring meaningful minority stakes (typically 3-6%) in undervalued companies and acting as an activist investor to drive strategic and operational changes. The firm’s historic returns are very impressive.

In December 2025, GCP disclosed a 6% stake in Noodles & Company, with Bruce Galloway publicly asserting that the shares were materially undervalued. In a letter to management, Galloway outlined an activist value-creation plan centered on selling 200 of the company’s 349 company-owned restaurants, potentially generating c. $60m in proceeds (market cap $36m and EV $147m). The capital would be used to repay high-cost debt carrying interest rates of 9-10%, materially strengthening the balance sheet. Galloway argued that this transaction would reduce bankruptcy risk, improve cash flow, and establish a more sustainable capital structure.

He explicitly referenced his prior successful activism at Regis Corporation, where a similar strategy of asset disposals and deleveraging led to a significant re-rating of the equity. The intervention came at a critical juncture for Noodles & Company, which had already announced a review of strategic alternatives and was struggling with declining revenues, operating losses, and negative margins despite initiatives such as closing underperforming restaurants. Galloway’s involvement underscored the need for a more aggressive restructuring to stabilize the business and unlock shareholder value.

Regis Corporation, owner of brands including Supercuts, represents a cornerstone example of GCP’s activism in the early 2020s. Galloway began accumulating shares in 2019-2020 and increased its stake to approximately 4.9% by year-end 2023. At the time, Regis was undergoing a major strategic transition, having exited company-owned salons in favor of a pure franchise model. However, the equity market had yet to reflect the potential benefits of this shift; the share price remained under severe pressure, culminating in a 1-for-20 reverse stock split in 2023 to avoid delisting, with the stock down 60% that year on a split-adjusted basis. Against this backdrop, Galloway emerged as an active owner. In January 2024, GCP sent a letter to the board offering support to “grow the business, improve the capital structure, and enhance shareholder value,” while requesting the appointment of two Galloway-nominated directors - equivalent to 20% of the board despite sub-5% ownership. Strategically, Galloway pushed for decisive restructuring measures, including the closure of hundreds of unprofitable salons and aggressive deleveraging to stabilize cash flow and restore financial health. The activism is widely viewed as successful; Galloway has stated that Regis’ equity value increased materially - by as much as 200% - following implementation of the deleveraging strategy and subsequent market re-rating.

The Regis case helped establish Bruce Galloway’s reputation as a turnaround-oriented activist, a track record he has since referenced in later campaigns at companies such as Noodles & Company and WW International (WeightWatchers) to reinforce the credibility of his proposals.

In early 2025, Galloway Capital Partners acquired just under a 3% stake in the highly distressed weight-loss company WW International, amid market speculation that WW was considering a Chapter 11 filing to address its $1.6bn debt burden following years of declining revenues and a share price collapse of more than 95% from peak levels. Bruce Galloway emerged as an activist investor opposing bankruptcy, arguing in a letter to CEO Tara Comonte that a court-led restructuring would constitute a breach of fiduciary duty and risk wiping out shareholder value, particularly given WW’s substantial NOLs worth several hundred million dollars that could be lost in Chapter 11. Instead, Galloway advocated for an out-of-court balance sheet restructuring, centered on a debt-for-equity swap with bondholders to materially reduce leverage while preserving upside for existing shareholders. He further pushed for strategic initiatives to restore growth, including pursuing partnerships or M&A within the healthcare ecosystem and monetizing WW’s brand and 2.5m-member base through adjacent offerings such as digital healthcare, diabetes, or hormone therapies. The market reacted favorably: WW shares rose 168% following disclosure of Galloway’s involvement, sharply reversing the 90% decline triggered earlier by bankruptcy concerns.

During 2024-2025, the firm accumulated a stake exceeding 5% in Ampco-Pittsburgh Corporation, a producer of forged products and industrial components. In December 2025, Galloway filed a Schedule 13D disclosing a 5.19% stake. While the stake was formally described as held for “investment purposes,” the filing clearly signaled potential activist engagement. Galloway stated that Ampco-Pittsburgh’s shares were materially undervalued and trading at a significant discount to intrinsic value, and disclosed that it had already sent a letter to management (dated December 19, 2025) urging actions to enhance shareholder value. The letter highlighted a perceived valuation gap and encouraged the board to explore strategic alternatives, including potential structural transactions, to unlock hidden value. Implicitly, this included options such as a sale of the company, a breakup, or other transformative strategic actions should the market fail to re-rate the business.

In late 2025, GCP disclosed that it had increased its ownership in the small-cap airline Global Crossing Airlines to approximately 6.24% of outstanding shares. In a December 2025 letter to management, Galloway described the company as “extremely undervalued” relative to its fundamental prospects and positioned Galloway’s experienced team as a partner in enhancing shareholder value and market awareness. More importantly, Galloway urged the board to retain an independent investment bank or financial adviser to evaluate strategic transactions. The letter explicitly referenced a potential sale, merger, acquisition, or take-private transaction as viable paths to maximize shareholder value. This represents a classic activist strategy in small-cap situations perceived to be mispriced by the market: signaling optionality around strategic outcomes to both management and potential acquirers. In Global Crossing’s case, Galloway’s intervention applied pressure on the board to either take decisive action to re-rate the shares or invite external interest, with the mention of a potential privatization also implying a willingness to increase ownership as part of a takeout transaction.

In June 2025, GCP disclosed that it had built a 4.31% stake over nearly a year in Babcock & Wilcox Enterprises (B&W) and was actively pushing for a re-rating of the equity. In a detailed letter to CEO and Chairman Kenneth Young, Galloway stated that the shares were “deeply undervalued relative to the company’s potential, ”arguing that the market was failing to reflect B&W’s improving fundamentals and growth outlook. Galloway highlighted several positive developments not yet captured in the valuation. He also emphasized B&W’s exposure to structural growth themes such as hydrogen production and carbon capture through its BrightLoop™ technology. In addition, Galloway pointed to rising demand for power and thermal infrastructure driven by AI-led data center expansion, an area where B&W is well positioned via its steam generation and energy conversion solutions. Rather than focusing on cost cuts or balance sheet repair, Galloway advocated a more proactive market narrative and openness to strategic initiatives.

Other Value Investments and Activist Roles

Galloway and his firm have pursued several similar “deep value” investments in small-cap public companies, often with a clear activist component.

PodcastOne, Inc. (2025): During 2025, Galloway Capital acquired approximately 3.15% of the podcast network PodcastOne and stated publicly that the shares were materially undervalued. Bruce Galloway argued that the stock price did not reflect the company’s revenue base or long-term potential, noting that comparable businesses had recently been acquired at valuations of up to ~10x revenue. He urged the board to immediately engage an investment bank to evaluate strategic alternatives, “including a sale, merger, or other transactions,” to maximize shareholder value

Babcock & Wilcox Enterprises (2024–25) and Global Crossing Airlines (2025) can be viewed through the same lens. In both cases, Galloway built relatively small but influential stakes (c. 4–6%) and sent detailed letters to management highlighting perceived undervaluation and calling for actions such as structural changes or more assertive strategic communication to support a re-rating.

Disclaimer

This article is based solely on publicly available information, including SEC filings, company reports, and reputable financial data sources. AI helped us with part of this. Check important data. It is intended for informational and educational purposes only and does not constitute investment advice or a recommendation to buy or sell any security. The author owns shares in Chicago Rivet & Machine (CVR) as part of a diversified investment portfolio. All opinions and interpretations are the author’s own at the time of publication. Readers should conduct their own due diligence before making any investment decisions.