Macellum Advisors Nominates Four Highly Qualified Directors For Election At Citi Trends, Inc.'s 2017 Annual Meeting Of Stockholders

NEW YORK, March 9, 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"), has nominated four highly qualified director candidates for election to the Company's Board of Directors (the "Board") at the Company's 2017 Annual Meeting of Stockholders.  Macellum also released a letter to the stockholders of the Company outlining the key reasons for why the Board should be reconstituted and expressing its serious concerns regarding the Company's stock price and financial underperformance, Board oversight and corporate governance practices.

Full text of the letter can be found in the attached link. Macellum Letter to Citi Trends Stockholders

Macellum believes with the right Board oversight and governance, the Company's stock price can more than double.  That target is based on modest same-store sales growth, achieving EBIT margins close to historic levels, future cash generation and an EBITDA multiple closer to its peers.

As further discussed in the letter, Macellum does not believe the current Board has demonstrated an ability to act quickly and critically despite the Company's prolonged underperformance.  Accordingly, Macellum believes the Board should be refreshed with new, independent directors who have the appropriate background and skills to diligently explore all options to create stockholder value, including, but not limited to, operational improvements, stock repurchases, and exploring all other strategic alternatives in the face of failing to achieve targets.

CERTAIN INFORMATION CONCERNING THE PARTICIPANTS

Macellum Advisors GP, LLC, together with the other participants named herein (collectively, "Macellum"), intends to file a preliminary proxy statement and accompanying White proxy card with the Securities and Exchange Commission ("SEC") to be used to solicit votes for the election of its slate of highly qualified director nominees at the 2017 annual meeting of stockholders of Citi Trends, Inc., a Delaware corporation (the "Company").

MACELLUM STRONGLY ADVISES ALL STOCKHOLDERS OF THE COMPANY TO READ THE PROXY STATEMENT AND OTHER PROXY MATERIALS AS THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION. SUCH PROXY MATERIALS WILL BE AVAILABLE AT NO CHARGE ON THE SEC'S WEB SITE AT HTTP://WWW.SEC.GOV. IN ADDITION, THE PARTICIPANTS IN THIS PROXY SOLICITATION WILL PROVIDE COPIES OF THE PROXY STATEMENT WITHOUT CHARGE, WHEN AVAILABLE, UPON REQUEST. REQUESTS FOR COPIES SHOULD BE DIRECTED TO THE PARTICIPANTS' PROXY SOLICITOR.

The "Participants" in the proxy solicitation are Macellum SPV III, LP, a Delaware limited partnership ("Macellum SPV"), Macellum Capital Management, LLC, a Delaware limited liability company ("Macellum Capital"), Macellum Advisors GP, LLC, a Delaware limited liability company ("Macellum GP"), Macellum Management, LP, a Delaware limited partnership ("Macellum Management"), MCM Management, LLC, a Delaware limited liability company ("MCM Management"), MCM Managers, LLC, a Delaware limited liability company ("MCM Managers"), Jonathan Duskin, Dyan Jozwick, Lana Cain Krauter and Paul Metcalf.

As of the date hereof, Macellum GP and its affiliates beneficially own, in the aggregate, 584,600 shares of common stock, $0.01 par value per share, of the Company (the "Common Stock"), including 53,500 shares of Common Stock underlying certain call options, representing approximately 3.92% of the outstanding shares of Common Stock. As of the date hereof, Macellum SPV directly owns 581,060 shares of Common Stock, including 53,500 shares of Common Stock underlying certain call options, representing approximately 3.89% of the shares of Common Stock outstanding. As of the date hereof, Macellum GP, as the general partner of Macellum SPV, may be deemed to beneficially own the 581,060 shares of Common Stock beneficially owned directly by Macellum SPV, representing approximately 3.89% of the shares of Common Stock outstanding. As of the date hereof, Macellum Management, as the investment manager of Macellum SPV, may be deemed to beneficially own the 581,060 shares of Common Stock beneficially owned directly by Macellum SPV, representing approximately 3.89% of the shares of Common Stock outstanding. As of the date hereof, Macellum Capital directly owns 3,540 shares of Common Stock, representing less than 1% of the outstanding shares of Common Stock. As of the date hereof, MCM Managers, as the managing member of Macellum Capital, may be deemed to beneficially own the 3,540 shares of Common Stock beneficially owned directly by Macellum Capital, representing less than 1% of the outstanding shares of Common Stock. As of the date hereof, MCM Management, as the managing member of MCM Managers, which serves as the managing member of Macellum Capital, may be deemed to beneficially own the 3,540 shares of Common Stock beneficially owned directly by Macellum Capital, representing less than 1% of the outstanding shares of Common Stock. As of the date hereof, Mr. Duskin as the sole member of Macellum GP and the managing member of MCM Management, may be deemed to beneficially own the 581,060 shares of Common Stock beneficially owned directly by Macellum SPV and the 3,540 shares of Common Stock beneficially owned directly by Macellum Capital, which, in the aggregate, represents approximately 3.92% of the outstanding shares of Common Stock. As of the date hereof, none of Mmes. Jozwick and Krauter or Mr. Metcalf beneficially owns any shares of the Common Stock.

Investor Contact:

Jonathan Duskin
Macellum Capital Management, LLC
(212)-956-3008
[email protected]

John Ferguson
Saratoga Proxy Consulting LLC
(212) 257-1311 or (888) 368-0379
[email protected]

SOURCE Macellum Capital Management, LLC