NEW YORK, April 10, 2017 /PRNewswire/ -- Macellum SPV
III, LP, Macellum Advisors GP, LLC, and certain of their affiliates
(collectively, "Macellum"), a large stockholder of Citi Trends,
Inc. (NASDAQ: CTRN) (the "Company" or "Citi Trends"), announced
that it has mailed its definitive proxy statement and accompanying
WHITE proxy card to elect its two highly qualified nominees
— Jonathan Duskin and Paul Metcalf — to the Company's Board of
Directors at the Company's upcoming annual meeting of stockholders
scheduled to be held on May 24,
2017. Macellum also announced that it mailed a letter to
stockholders expressing its belief that the Board should not be
allowed to complete its fourth search for a new CEO in eight years
without refreshing its members with new independent directors that
are committed to acting in the best interests of
stockholders.
In the stockholder letter, Macellum highlights the need to hold
the current Board, under the leadership of Executive Chairman
R. Edward Anderson, accountable for
the significant deterioration in stock price and operating results
and disruptive CEO turnover since he became Chairman in 2006.
Macellum notes that the Company's stock price has declined 67%
since Mr. Anderson's appointment to Chairman in May 2006 until March 8,
2017, one trading day prior to Macellum's public
announcement that it nominated directors for election at the annual
meeting.
In the letter, Macellum also expresses its concerns that the
Board's long tenure has compromised its independence, resulting in
a lack of alignment of interests with all stockholders, and
outlines certain efforts its nominees will pursue to improve Citi
Trends' merchandising strategy, drive higher sales margins and
EBITDA, accretively allocate capital and explore all strategic
alternatives to maximize the value of the stock for the benefit of
all stockholders.
The full letter can be found at the link here: Macellum Letter
to Citi Trends Stockholders
Macellum has launched a website, www.fixcititrends.com,
dedicated to the election of its two highly qualified stockholder
representatives, which contains Macellum's other publicly filed
investor materials, including its prior open letter to stockholders
dated March 9, 2017. The
website also contains the draft settlement agreement prepared by
the Company and delivered to Macellum, which demonstrates how the
Board refused to commit to (and would only consider) the
appointment of new directors to the Board and was unwilling to
consider the resignation of even one incumbent director or the
appointment of a direct stockholder representative to the
Board.
If you have any questions or need assistance in voting the
Macellum's WHITE proxy card, please contact Macellum's proxy
solicitor Saratoga Proxy Consulting LLC at the address or phone
number below.
Investor Contact:
Jonathan
Duskin
Macellum Capital Management, LLC
(212)-956-3008
Jduskin@macellumcap.com
John Ferguson
Saratoga Proxy Consulting LLC
(212) 257-1311 or (888) 368-0379
Info@saratogaproxy.com
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/macellum-mails-definitive-proxy-statement-and-letter-to-stockholders-of-citi-trends-inc-300437085.html
SOURCE Macellum Capital Management, LLC