Sponsored By:
Grocery Vet Hatchell to Lead The Pantry
Succeeds Marks as president, CEO; interim chief exec Holman to remain chairman
CARY, N.C. -- In a much anticipated announcement, grocery industry veteran Dennis G. Hatchell has been named president and chief executive officer of The Pantry, effective March 5, 2012. His initial focus will be "to work with the board and the management team to refine our strategic vision, prioritize our investments to increase shareholder value and get to know store-level operations to fully understand the needs of our customers and employees," he said.
He will succeed Edwin J. Holman who served as interim CEO of the convenience retailer since Terrance M. Marks resigned as CEO effective in October 2011. Holman will remain in his position as chairman, working closely with Hatchell, who will join the board following the company's annual meeting in March.
Dennis HatchellBen Brownlow, vice president of equity research for Memphis, Tenn.-based Morgan Keegan & Co., told CSP that he views the announcement "as positive for the company's outlook.
"Near-term, I believe there will be an adjustment period as Hatchell gets assimilated with the fuel side of the business and its core convenience store customer. That said, I believe he possesses the experience The Pantry needed--a background in foodservice, merchandising, retailing and operations, all of which are core attributes to leading the turnaround," he said.
As reported yesterday in a Morgan Keegan/CSP Daily News Flash, Hatchell previously served as vice chairman of Alex Lee Inc., Hickory, N.C., a holding company for Lowe's Food Stores Inc., Merchants Distributors Inc. and Institution Food House.
"After an extensive search process, the board is delighted that Dennis will be joining The Pantry as president and CEO," said Wilfred A. Finnegan, lead director. "Dennis is a proven leader who possesses a unique blend of merchandising and operating experience. We believe his successful track record in the food distribution and retail grocery business where he served in various principal positions for thirty three years, make him ideally suited to lead the company, as it continues to grow and succeed in the highly competitive convenience store market sector. The board is very appreciative of the leadership that Ed Holman has provided on an interim basis to keep the Company focused on its strategic objectives."
Hatchell, 62, is a seasoned executive with more than 39 years of experience in the grocery business. He has served as vice chairman of Alex Lee since 2011 and president and COO from 1995 to 2011; president of Lowes Food Stores, a division of Alex Lee, from 1989 to 1995; group vice president of merchandising and store operations from 1986 to 1989 for H. E. Butt Grocery Co.
Previously, Hatchell served as president of Merchants Distributors, a division of Alex Lee, from 1980 to 1986. He also served in several positions rising to vice president and general manager of Western Grocers (SuperValu) from 1972 to 1980.
The Pantry, based in Cary, N.C., is the leading independently operated convenience store chain in the southeastern United States and one of the largest independently operated convenience store chains in the country. As of Feb. 3, 2012, the company operated 1,618 stores in 13 states under select banners, including Kangaroo Express, its primary operating banner.
(See Related Content below for previousCSP Daily News coverage of The Pantry succession.)
Retailer Focus: The Pantry / Kangaroo Express
Related Terms: Corporate, Editors' Pick, Company News
About the Author
Trending
By:
CSPTV
More than $50,000 donated to local schools through retailer's Fueling the Community program.
By:
Recommendations
CSP Business Media, LLC.
1100 Jorie Blvd, Suite 260 | Oak Brook, IL 60523
Phone: 630-574-5075 | Fax: 630-574-5175
cspinquire@cspnet.com
Comments
From latest SEC document: Under the Agreement, Mr. Hatchell will receive an initial annual salary of $750,000, subject to periodic increases in the discretion of the Company’s Board of Directors. In addition, on the effective date of the Agreement Mr. Hatchell will receive: (1) shares of restricted stock with a value on the date of grant of $435,937.50 with time-based vesting restrictions (the “Effective Date Time Restricted Stock”); (2) shares of performance-based restricted stock where the target number of shares is determined by dividing $361,000 by the fair market value on the date of grant (the “Performance-Based Restricted Stock ”); (3) an option to purchase shares of the Company’s common stock with a grant date fair value of $98,438 (the “Stock Options”) and (4) a sign-on bonus in the amount of $46,100. In addition, in December 2012, subject to his continued employment with the Company, Mr. Hatchell will receive shares of restricted stock with a value on the date of grant of $435,937.50 with time-based vesting restrictions (together with the Effective Date Time Restricted Stock, the “Initial Time Restricted Stock”). For fiscal 2012, Mr. Hatchell will receive a cash bonus equal to the greater of $437,500 or the amount he would received under the Company’s bonus plan applicable to its senior executives, provided that he is still employed with the Company at the time of bonus payments.
Pursuant to the Agreement, Mr. Hatchell will receive cash living allowance of $3,000 per month for two months and will be paid $150,000 when he purchases a residence in the Cary, North Carolina area, in lieu of certain benefits provided for in the Company’s executive and senior officer relocation policy. Mr. Hatchell will also be eligible to participate in all medical, dental, disability, insurance, 401(k), pension, vacation and other employee benefit and incentive plans made available to Company employees at Mr. Hatchell’s level. Mr. Hatchell will also receive payment of his legal expenses incurred in connection with the negotiation of the Agreement up to a maximum of $25,000.
I certainly wish him well, but The Pantry needs aggressive leadership right now, and neither Alex Lee Co nor Lowe's Foods have been known for innovation. Solid companies, yes, but cutting edge, no. And The Pantry needs innovation. Their stores are increasingly irrelevant as Circle K, Sheetz, and now 7-Eleven invade The Pantry's market areas with bigger, nicer stores with significantly larger food service offerings. Pantry's Kangaroo Express stores are faded relics of the days when they had smaller, weaker competitors. It may be too late for any CEO to save the day.