COUNTDOWN to Pantry Board Meeting (1 Day)

Management vs. dissidents: Which vision will prevail for convenience store chain's future?

Published in CSP Daily News

The Pantry Kangaroo Express Convenience Stores

RALEIGH, N.C. -- The Pantry Inc. will hold its 2014 Annual Meeting of Stockholders on Thursday, March 13, 2014 at the Raleigh Marriott Crabtree Valley in Raleigh, N.C. On the agenda is a contentious battle for the heart and soul of the company in the form of a vote to elect or re-elect the convenience store company's board of directors from a slate of current directors and several new nominees.

The controversy arose out of the concerns of a group of "dissident" shareholders calling themselves, collectively, Concerned Pantry Shareholders. CPS-led primarily by JCP Investment Management LLC and Lone Star Value Management LLC, which hold approximately 2% of The Pantry shares--believe that the retailer is on the wrong track strategically and that it is being mismanaged by its deeply entrenched current board. CPS has championed a slate of three new nominees for the nine-seat board that it believes are more qualified than many of the existing directors to lead the chain competitively into the future.

The battle has been waged largely through a series of proxy statements, and several proxy advisory firms weighed in on the side of CPS.

"In our view, Pantry is deeply undervalued as a result of poor investment and operational decisions that have destroyed shareholder value," CPS said, summing up its position.

Click here to view CPS' plan to turn around The Pantry.

The Pantry summed up for stockholders: "You have the opportunity to help determine the future of The Pantry and your investment in the company. You--the stockholders of The Pantry--will decide whether the company continues on its proven path of stockholder value creation led by its board and management team, or is diverted by the self-serving, opportunistic agenda advocated by the dissident group."

Click here to view The Pantry's investor presentation. And click here to view its brochure for stockholders laying out its case refuting CPS..

Click here to view all of The Pantry's U.S. Securities & Exchange Commission (SEC) filings.

JCP Investment Management is a Houston-based investment firm that engages in value-based investing across the capital structure. It follows an opportunistic approach to investing across different equity, credit and distressed securities. Greenwich, Conn.-based Lone Star Value Management is an investment firm that invests in undervalued securities and engages with its portfolio companies in a constructive way to help maximize value for all shareholders.

As of Jan. 30, 2014, The Pantry, based in Cary, N.C., operated 1,537 stores in 13 states under select banners, including its primary operating banner Kangaroo Express.

Here is a chronological roundup of CSP Daily News coverage of The Pantry and CPS:

The Pantry Under Siege

Retailer says "dissident" director nominees don't possess experience, expertise require

 

'Concerned' Shareholders Move to Capture The Pantry's Board

Allege concerns with "history of underperformance," "poor corporate governance"

 

A Coup at 'Roo'

"We are bleeding, we are bleeding profusely," Pantry official confides

 

Proxy Wars at The Pantry

Dissident group mounts battle for the board

 

The Pantry's Grocery Gambit

C-store chain under fire for lacking in-channel leadership nominates supermarket exec to board

 

'Dissident' Group Makes Case for Changes to The Pantry's Board

Not looking for control, only a voice

 

ANALYSIS: Can The Pantry Be Saved?

You know the challenges; what are some potential solutions?

 

The Pantry, 'Dissidents' Get Ready to Rumble

Retailer, dissatisfied investors take board nominee cases, strategies to stockholders

 

'Dear Shareholder': The Pantry, CPS Lay Out Their Plans

Company leaders, investors group paint radically different pictures of chain's past, future

 

The Pantry Refutes Proxy Advisory Firm's Report Favoring CPS

Retailer says Glass, Lewis report contains "numerous inaccuracies," defends strategy

 

Second Proxy Advisory Firm Backs CPS Over The Pantry

As retailer continues to make its case, ISS recommends vote for "dissident" slate

 

Proxy Advisory Firms Pile on The Pantry

Embattled c-store chain disputes reports as meeting looms next week

 

COUNTDOWN to Pantry Board Meeting (7 Days)

Retailer focuses on QSR strategy, argues for "measured expansion"

 

COUNTDOWN to Pantry Board Meeting (3 Days)

Retailer defends capital allocation, store base strategy

 

COUNTDOWN to Pantry Board Meeting (2 Days)

Analysis: How important is this week's vote for chain directors?

Part of CSP's 2014 Convenience Top 101 retailers