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
Jduskin@macellumcap.com
John Ferguson
Saratoga Proxy Consulting LLC
(212) 257-1311 or (888) 368-0379
Info@saratogaproxy.com
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visit:http://www.prnewswire.com/news-releases/macellum-advisors-nominates-four-highly-qualified-directors-for-election-at-citi-trends-incs-2017-annual-meeting-of-stockholders-300421126.html
SOURCE Macellum Capital Management, LLC