Privet Fund LP Delivers Letter to Independent Directors of J. Alexander's

ATLANTA, April 2, 2012 /PRNewswire/ -- Privet Fund LP ("Privet"), member of a group of shareholders collectively holding over 12.6% of the common stock of J. Alexander's Corp. ("J. Alexander's" or the "Company") (NASDAQ: JAX), today announced that it delivered a letter to the Company's independent directors.

The full text of the letter follows:

April 2, 2012

E. Townes Duncan
Brenda B. Rector
Joseph N. Steakley

J. Alexander's Corporation
3401 West End Avenue, Suite 260
Nashville, Tennessee 37202

Dear Independent Directors of J. Alexander's Corporation,

As significant shareholders of J. Alexander's Corporation ("J. Alexander's" or the "Company"), holding over 12.6% of the Company's common stock, we call on you to exercise your fiduciary duties as independent directors. These duties mandate that you work to create value for shareholders. Given the Company's historical inability to create stockholder value, we believe it is now time to give shareholders a voice in the strategic direction of J. Alexander's.

We find it troubling that, following the nomination of our highly qualified director candidates and our numerous attempts to more fully discuss our suggestions, no representative of Company management or current Director has sought to speak with any member of our group. There has been no attempt to interview our candidates for potential Board service, nor has there been any effort to initiate a constructive dialogue that could potentially avoid a protracted and costly proxy contest. How can the complete dismissal of the Company's largest shareholder group (not to mention the implementation of a more stringent poison pill) be construed as being in the best interests of shareholders? As independent directors of a widely-held public company, your fiduciary duties may at times be at odds with the interests of non-independent directors. At such times, you must not simply settle for what may satisfy your technical legal obligations, but rather strive to create results that advance shareholder interests.

We note that the Board has retained a proxy solicitation firm. Hopefully this firm's advice focuses on discovering and communicating the opinions of your shareholders, rather than blindly pushing the Company toward a contested election. It is our opinion that a proxy contest is definitively not in the best interests of the Company and its shareholders. Not only will the inordinate monetary costs be fully borne by the stockholders (will leadership and the Board accept less money this year if they lose?), but a proxy contest will have the ancillary effect of distracting management and the Board from devoting the necessary time and attention to properly operating the business.

Your role as independent directors mandates that you have an open mind when engaging with large shareholders. It is only prudent to examine several opinions and exhaust all options prior to commencing an extremely costly course of action. The position of independent director was conceived to function as a representative of the shareholder who is not burdened with the conflicts of interest held by non-independent directors. Yet you seem to be willing to act counter to the wishes of your own constituency.

The time has come for you to assert yourselves in your role as shareholder representatives, not passive advocates for the status quo. We urge you to not let the metaphorical team suffer simply because certain players insist on never letting go of the ball.

We are long-term shareholders who would prefer nothing more than to continuously own this Company for several years. We are not demanding that the Company be put up for sale, nor advocating for the termination of any employees. As shareholder representatives, we simply want to be involved in crafting long-term operational and capital allocation strategies while holding management accountable for executing on stated goals and creating shareholder value.

We maintain our firm commitment to advancing the best interests of the Company and its owners. Should management continue down this path of needless value destruction, we ask you to stay mindful of the potential costs, especially in relation to the size of the current enterprise, and request that you not be wasteful as the Company continues to fight us with our own money.

Best Regards,

Ryan Levenson and Ben Rosenzweig
Privet Fund Management LLC

Contact:
Ben Rosenzweig
Privet Fund Management LLC
(404) 419-2674

SOURCE Privet Fund LP