COUNTDOWN to Pantry Board Meeting (1 Day)
Management vs. dissidents: Which vision will prevail for convenience store chain's future?
RALEIGH, N.C. -- The Pantry Inc. will hold its 2014 Annual Meeting of Stockholders on Thursday, March 13, 2014 at the Raleigh Marriott Crabtree Valley in Raleigh, N.C. On the agenda is a contentious battle for the heart and soul of the company in the form of a vote to elect or re-elect the convenience store company's board of directors from a slate of current directors and several new nominees.
The controversy arose out of the concerns of a group of "dissident" shareholders calling themselves, collectively, Concerned Pantry Shareholders. CPS-led primarily by JCP Investment Management LLC and Lone Star Value Management LLC, which hold approximately 2% of The Pantry shares--believe that the retailer is on the wrong track strategically and that it is being mismanaged by its deeply entrenched current board. CPS has championed a slate of three new nominees for the nine-seat board that it believes are more qualified than many of the existing directors to lead the chain competitively into the future.
The battle has been waged largely through a series of proxy statements, and several proxy advisory firms weighed in on the side of CPS.
"In our view, Pantry is deeply undervalued as a result of poor investment and operational decisions that have destroyed shareholder value," CPS said, summing up its position.
The Pantry summed up for stockholders: "You have the opportunity to help determine the future of The Pantry and your investment in the company. You--the stockholders of The Pantry--will decide whether the company continues on its proven path of stockholder value creation led by its board and management team, or is diverted by the self-serving, opportunistic agenda advocated by the dissident group."
Click here to view The Pantry's investor presentation. And click here to view its brochure for stockholders laying out its case refuting CPS..
JCP Investment Management is a Houston-based investment firm that engages in value-based investing across the capital structure. It follows an opportunistic approach to investing across different equity, credit and distressed securities. Greenwich, Conn.-based Lone Star Value Management is an investment firm that invests in undervalued securities and engages with its portfolio companies in a constructive way to help maximize value for all shareholders.
As of Jan. 30, 2014, The Pantry, based in Cary, N.C., operated 1,537 stores in 13 states under select banners, including its primary operating banner Kangaroo Express.
Here is a chronological roundup of CSP Daily News coverage of The Pantry and CPS:
Retailer says "dissident" director nominees don't possess experience, expertise require
Allege concerns with "history of underperformance," "poor corporate governance"
"We are bleeding, we are bleeding profusely," Pantry official confides
Dissident group mounts battle for the board
C-store chain under fire for lacking in-channel leadership nominates supermarket exec to board
Not looking for control, only a voice
You know the challenges; what are some potential solutions?
Retailer, dissatisfied investors take board nominee cases, strategies to stockholders
Company leaders, investors group paint radically different pictures of chain's past, future
Retailer says Glass, Lewis report contains "numerous inaccuracies," defends strategy
As retailer continues to make its case, ISS recommends vote for "dissident" slate
Embattled c-store chain disputes reports as meeting looms next week
Retailer focuses on QSR strategy, argues for "measured expansion"
Retailer defends capital allocation, store base strategy
Analysis: How important is this week's vote for chain directors?