Publicly traded convenience store chain The Pantry has enlisted Joele Frank, Wilkinson Brimmer Katcher as it fends off a dissident proxy challenge ahead of its March 13 annual meeting.
A group including JCP Investment Management in Houston and Lone Star Value Management of Old Greenwich, Conn., is pushing an alternative slate of three board candidates in a bid to improve governance and performance at Cary, N.C.-based The Pantry.
Connecticut-based InvestorCom is handling the outreach campaign for the group, which dubs itself Concerned Pantry Shareholders and frets about a sluggish stock price, debt levels, and the current Pantry board's "minimal" ownership of less than 1% of the company. The group's slate picked up the endorsement of three proxy advisory firms, Glass Lewis & Co., Institutional Shareholder Services, and Egan-Jones.
The Pantry, which says its board and management are following a strategic plan to improve the business and shareholder value, said it is "disappointed" in the Glass Lewis report and challenged its accuracy. It also blasted the shareholder group for a "similar disregard for the facts and carelessness" in touting the flawed report.
The Pantry runs 1,567 stores in 13 states under the Kangaroo Express name.
Innisfree M&A Incorporated is helping The Pantry promote its slate of board candidates to shareholders.
Joele Frank president Matthew Sherman and partner Andrew Siegel are advising The Pantry, which posted a fiscal first quarter net loss of $5.1M on revenue of $1.8B in the fourth quarter.