The Pantry Inc. has confirmed that JCP Investment Management LLC, and Lone Star Value Management LLC (the dissident group) submitted to the company a notice of intent to nominate director candidates to stand for election to The Pantry’s Board of Directors at the Company’s 2014 Annual Meeting of Stockholders.
After discussions between the Company (management and selected directors) and the dissident group, the Company’s Corporate Governance and Nominating Committee reviewed several individuals put forward by the dissident group and determined that they should not be nominated by The Pantry to serve on the Company’s Board of Directors.
The Pantry issued the following statement:
“The Pantry’s Board of Directors and management team are committed to acting in the best interests of the Company and all stockholders. We seek to maintain an open dialogue with stockholders and have spoken with representatives of the dissident group on several occasions to understand their thoughts.
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. Our Board is currently composed of 10 highly qualified directors, nine of whom are independent, who together possess significant retail, convenience store, consumer packaged goods, foodservice and financial experience that is highly relevant and critical to our business.
Beginning in March 2012, the Board put in place a new leadership team that it believes possesses the skills and experience to improve the Company’s performance and unlock the potential of The Pantry’s powerful convenience store platform. Since that time, the Board and management team have been executing against the key pillars of The Pantry’s strategy, which include:
Increasing same-store sales by enhancing merchandise mix and effectiveness;
Investing in technology to support fuel pricing optimization;
Prudently managing expenses and reducing debt;
Accelerating its store remodeling program, enhancing proprietary foodservice and adding quick-service restaurants in existing stores; and
Utilizing new store opportunities and selective acquisitions to prioritize markets, further accelerate growth and build stockholder value.
We are now taking advantage of the favorable operating environment and The Pantry’s leading positions and scale in attractive markets to make progress on our strategic priorities. We believe that, with the expertise of an outstanding management team and the oversight of an engaged and knowledgeable Board, The Pantry is well positioned to deliver sustained profitable growth. We are confident that the Company is on the right path to achieve future success and optimize value creation for all stakeholders.”
The Pantry’s Board will present its formal recommendation regarding director nominations in its proxy statement for its Annual Meeting of Stockholders scheduled for March 13, 2014, which will be filed with the Securities and Exchange Commission.
Headquartered in Cary, N.C., The Pantry, Inc. operates 1,537 stores in 13 states under select banners, including Kangaroo Express, its primary operating banner.