Names Bruce Smith Acting CEO
Appoints Ed Anderson as Executive
Chairman
Citi Trends, Inc. (“Citi Trends” or the “Company”) (NASDAQ:CTRN)
today announced that its Board of Directors (the “Board”) has
appointed Bruce Smith, the Company’s Chief Operating Officer and
Chief Financial Officer, as Acting Chief Executive Officer, and Ed
Anderson, as Executive Chairman, effective immediately. Jason
Mazzola has resigned as CEO and a director of the Company to pursue
another opportunity.
The Board has commenced a formal search process to identify a
permanent CEO. Although the timing of the completion of this
process cannot be determined with certainty, the Board’s objective
is to make an appointment as soon as practical while allowing time
for a thorough search. Mr. Smith, who will continue to serve as COO
and CFO during the search process, has had a broad role with the
Company’s management team during his tenure and will work closely
with Mr. Anderson to manage Citi Trends’ operations and advance the
Company’s long-term business strategy.
“I look forward to working closely with Bruce, who has
demonstrated an important range of skills and insights during his
10 years with the Company, and the rest of the leadership team to
create immediate and lasting value for our stockholders, customers
and employees,” said Mr. Anderson. “We have begun a search for a
permanent CEO, and will, of course, strongly consider Bruce for
this role given his qualifications and excellent service to the
Company over the years. Citi Trends’ future is bright and everyone
within the organization remains focused on delivering outstanding
product that excites our customer, fuels loyalty and drives sales.”
Mr. Anderson continued, “We appreciate Jason’s contributions to the
Company during his tenure and wish him well in his future
endeavors.”
“Having worked alongside Ed for many years, in addition to
having developed our strategic plan with Jason and the management
team, I believe we are well positioned to capitalize on the many
opportunities that lie ahead,” said Mr. Smith.
John Lupo, lead independent director, stated, “Ed is a proven
leader who has made significant contributions to Citi Trends during
his more than 15 years with the Company. His intimate knowledge of
the Company and our industry make him ideally suited to work with
Bruce, a talented executive with significant expertise. I am
confident they will continue to advance our strategic priorities
put in place to drive sustained growth and profitability, which the
Board would expect to be reflected in the market valuation of our
stock and the delivery of solid returns to our shareholders. With
this strong foundation in place, the Board is committed to Citi
Trends’ long-term business strategy and confident in management’s
ability to execute during this transition and beyond.”
Mr. Smith has been the CFO of Citi Trends since April 2007 and
has served as its Chief Operating Officer since March 2015. He
brings more than 35 years of experience in strategic and financial
management and operations. Prior to joining Citi Trends, Mr. Smith
served as CFO and Executive Vice President of Hancock Fabrics Inc.,
a specialty retailer of crafts and fabrics. Prior to that, he
served as CFO and Executive Vice President of discount retailer,
Fred’s Inc. Mr. Smith is a Certified Public Accountant.
Mr. Anderson has served as a Citi Trends director since 2001 and
as Chairman of the Board since May 2006, including holding the
Executive Chairman title on three occasions. He served as CEO of
the Company from 2001 to April 2009 and returned to that position
from January 2012 to March 2015. From 1997 to 2001, Mr. Anderson
was Chief Financial Officer of Variety Wholesalers, Inc., an
operator of discount stores. Prior to 1997, Mr. Anderson served as
Chairman, President and Chief Executive Officer of Rose’s Stores,
Inc., a discount retailer.
As the leadership transitions, the Board has reduced the size of
its Board of Directors to six members, from seven members,
effective immediately.
About Citi Trends
Citi Trends, Inc. is a value-priced retailer of urban fashion
apparel and accessories for the entire family. The Company operates
538 stores located in 31 states. Citi Trends' website address is
www.cititrends.com. CTRN-G
Forward-Looking
Statements
All statements other than historical facts contained in this
news release, including statements regarding our future financial
results and position, business policy and plans and objectives of
management for future operations, are forward-looking statements
that are subject to material risks and uncertainties. The words
"believe," "may," "could," "plans," "estimate," "continue,"
"anticipate," "intend," "expect" and similar expressions, as they
relate to Citi Trends, are intended to identify forward-looking
statements. Investors are cautioned that any such forward-looking
statements are not guarantees of future performance or results and
are inherently subject to risks and uncertainties, some of which
cannot be predicted or quantified. Actual results or developments
may differ materially from those included in the forward-looking
statements as a result of various factors which are discussed in
Citi Trends filings with the Securities and Exchange Commission.
These risks and uncertainties include, but are not limited to,
uncertainties relating to economic conditions, growth risks,
consumer spending patterns, competition within the industry,
competition in our markets, the ability to anticipate and respond
to fashion trends and the outcome of our current proxy fight and
any other actions of activist stockholders. Any forward-looking
statements by the Company are intended to speak only as of the date
such statements are made. Except as required by applicable law,
including the securities laws of the United States and the rules
and regulations of the Securities and Exchange Commission, Citi
Trends does not undertake to publicly update any forward-looking
statements in this news release or with respect to matters
described herein, whether as a result of any new information,
future events or otherwise.
Important Additional
Information
Citi Trends, its directors and certain of its executive officers
may be deemed to be participants in the solicitation of proxies
from Citi Trends stockholders in connection with the matters to be
considered at Citi Trends' 2017 Annual Meeting. Citi Trends intends
to file a proxy statement with the U.S. Securities and Exchange
Commission (the "SEC") in connection with any such solicitation of
proxies from Citi Trends stockholders. INVESTORS AND
STOCKHOLDERS ARE STRONGLY ENCOURAGED TO READ ANY SUCH PROXY
STATEMENT AND ACCOMPANYING PROXY CARD AND OTHER DOCUMENTS FILED
WITH THE SEC CAREFULLY AND IN THEIR ENTIRETY WHEN THEY BECOME
AVAILABLE AS THEY WILL CONTAIN IMPORTANT INFORMATION. Detailed
information regarding the identity of potential participants, and
their direct or indirect interests, by security holdings or
otherwise, will be set forth in the proxy statement and other
materials to be filed with the SEC in connection with Citi Trends'
2017 Annual Meeting. Information regarding the direct and indirect
beneficial ownership of Citi Trends' directors and executive
officers in Citi Trends securities is included in their SEC filings
on Forms 3, 4 and 5, and additional information can also be found
in Citi Trends' Annual Report on Form 10-K for the year ended
January 30, 2016, filed with the SEC on April 13, 2016 and its
Quarterly Reports on Form 10-Q for the first three quarters of the
fiscal year ended January 28, 2017 filed on May 31, 2016, August
29, 2016 and December 5, 2016, respectively. Stockholders will be
able to obtain any proxy statement, any amendments or supplements
to the proxy statement and other documents filed by Citi Trends
with the SEC for no charge at the SEC's website at www.sec.gov.
Copies will also be available at no charge at the Investor
Relations section of our corporate website at
www.cititrends.com.
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Media::Phil Denning,
ICR646-277-1258phil.denning@icrinc.comorInvestors:Bruce
Goldfarb, Chuck Garske and Teresa HuangOkapi
Partners212-297-0720
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