CARY, N.C. -- Seeking to augment its current board of directors with an executive possessing broad retail experience and specific regional knowledge ahead of a group of "dissident" investors that has put up its own nominees, The Pantry Inc. has announced that its board has nominated a new independent director, Thomas W. "Tad" Dickson, former CEO of Harris Teeter Supermarkets Inc., for election at the company's 2014 annual meeting of stockholders to be held on March 13, 2014.
As reported in a 21st Century Smoke/CSP Daily News Flash, officials at The Pantry are facing an attempt by Concerned Pantry Shareholders (CPS), a group led by JCP Investment Management LLC and Lone Star Value Management LLC--together owning approximately 2% of The Pantry shares--to install new directors. CPS announced its intention to seek the election of what it says are three independent, highly qualified director candidates.
CPS is a group "dedicated to maximizing shareholder value and improving corporate governance at Pantry," it said.
Before Wednesday's announcement of Dickson's nomination, CPS said The Pantry leadership has failed to hire someone within the convenience channel to an executive position. Grocery industry veteran Dennis Hatchell was named president and CEO of The Pantry effective March 2012. He succeeded Edwin Holman, who had served as interim CEO since Terrance Marks resigned as CEO effective in Oct. 2011. Holman remained in his position as chairman. Hatchell previously served as vice chairman of Alex Lee Inc., Hickory, N.C., a holding company for Lowe's Food Stores Inc., Merchants Distributors Inc. and Institution Food House.
Dickson's nomination does not address that criticism. He most recently served as CEO of Matthews, N.C.-based Harris Teeter, a leading regional supermarket chain in the southeastern and mid-Atlantic United States, from Feb. 1997 up to the company's sale to The Kroger Co. in Jan. 2014, and as chairman of its board from March 2006 to Jan. 2014.
If elected, he will bring to The Pantry nearly two decades of operational and management experience in the supermarket industry, the company said, including more than 15 years as a public company director, and possesses broad supermarket and real-estate knowledge, particularly in The Pantry's core geographies.
"Tad Dickson's significant executive retail experience in the southeastern U.S. makes him highly qualified to serve as a member of our board of directors," said Edwin J. Holman, chairman of The Pantry's board. "Through his longstanding career at and leadership of Harris Teeter, Tad has a deep understanding of our industry and the region in which we operate, as well as substantial public company board experience. We are delighted that Tad has agreed to serve, if elected, as a new, independent director on The Pantry's board and look forward to benefiting from his insights as we continue to position the Company for future growth and success."
In announcing his departure from Harris Teeter as it merges with Kroger, Kroger CEO W. Rodney McMullen said of Dickson: "Tad has done an outstanding job as the CEO for the past 16 years. During his tenure as CEO, the management team of Harris Teeter has more than doubled the sales of the company and increased the operating profit fourfold by building over 100 new stores, expanding into new markets and improving the overall operating performance of the company.”
Dickson said, "I am very excited to have the opportunity to serve on The Pantry's board of directors. The Pantry's management team has made great strides in realigning the company's strategic priorities to take advantage of the favorable operating environment, and, if elected, I look forward to helping to oversee the continued successful execution of the strategic plan."
Concerning CPS' nominees, The Pantry said in a press statement, "After carefully evaluating several individuals put forward by the dissident group, we have determined that they do not possess the particular experience and expertise that the company is seeking in director candidates at this time."
Based in Cary, N.C., The Pantry is a leading independently operated convenience store chain in the southeastern United States and one of the largest independently operated convenience store chains in the country. As of Jan. 23, 2014, the company operated 1,537 stores in 13 states under select banners, including Kangaroo Express, its primary operating banner.
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