Pantry Investors Are Mixed Bag

Just a week after a New York investor yanked its 7.5% share in The Pantry Inc., another investor stepped forward and raised its shares from just under 5% to 6.4%, the Triangle (N.C.) Business Journal reported.

Oregon-based Stadium Capital Management LLC, a hedge fund investing in small-cap companies, now owns 1.42 million shares of the Sanford, N.C.-based Pantry, owner and operator of 1,643 convenience stores in 11 states.

Earlier this month, Hayground Cove Associates, of New York, sold its 7.5% interest in The Pantry, a company whose shares have fallen 60% this year alone.

The Pantry said it’s planning to post losses for the quarter ending March 27, getting hit by softer consumer spending, high gas and diesel prices and lower margins on gas. The company also faces a possible downgrade of its credit rating from Moody’s, since low earnings and increased debt have jeopardized its credit rating.

The Pantry will provide its second quarter 2008 financial results on May 6. The company’s c-stores operate under the names Golden Gallon, Kangaroo Express, Lil’ Champ and Cowboys.


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