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.
Macellum Capital Management, LLC
Saratoga Proxy Consulting LLC
(212) 257-1311 or (888) 368-0379
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