Advertise with us
[July 12, 2014]
Group wants new board [The Salina Journal, Kan. :: ]
(Salina Journal (KS) Via Acquire Media NewsEdge) July 12--Group wants new board By TIM HORAN Salina Journal -- Saturday, July 12, 2014 2:00 AM Concerned ALCO Stockholders has filed proxy statement Read more...
Concerned ALCO Stockholders has filed proxy statement A group of ALCO stockholders wants to vote in a new board of directors.
The group, Concerned ALCO Stockholders, filed a proxy statement with the Securities and Exchange Commission on July 9 asking shareholders of the former Abilene-based company to elect seven new board members at the annual meeting July 30 in Dallas.
"CAS firmly believes that the incumbent board is employing stall tactics and expensive legal distractions to both take attention away from ALCO's poor share and operating performance, and to keep their current board positions at the expense of the stockholders," said David Pointer, one of the group's leaders, in a news release. "CAS would also like to direct ALCO investors to its own definitive 14A proxy statement, where for ALCO's 2014 fiscal year, Chairman of the Board Royce Winsten received compensation valued in excess of $750,000 while the Company posted a net loss of $26.4 million.
"In addition to better governance of senior management and the oversight of the implementation of needed operating improvements, CAS will not permit this egregious level of board compensation to continue." Action, inaction In the proxy statement, the group wrote they were concerned not only with ALCO's poor stock price and financial performance, but also were highly troubled by both actions taken by the board of directors and inaction in addressing and remedying deteriorating operations.
"They and the company have wasted millions of dollars in poorly executed expansion and have incurred significant and irresponsible levels of financial leverage," it said.
ALCO Stores, founded in Abilene in 1901, moved its headquarters to Coppell, Texas, last year. Last year, shareholders rejected a merger of ALCO with Argonne Capital Group.
Poor stock performance The group is being led by Pointer, founder of VI Capital Management, and Dilip Singh, general partner of Value Generation Capital.
CAS refers to ALCO's poor stock price, poor operating and financial performance and failed and ineffective strategies. They also note that the board of directors is excessively compensated and owns little ALCO stock.
One of the key players for the CAS group is Stanley Latacha, who is described as a turnaround expert and proven strategic marketing and branding leader with more than 30 years of experience.
Latacha served as a senior vice president and chief marketing officer of Pamida, which operates 180 retail stores and pharmacies in small and mid-sized communities.
Recommends board A spokesperson for ALCO Stores was unable to comment on the proposed board takeover.
In the proxy statement, ALCO recommends a vote for the current board of directors, which includes Winsten as chairman of the board and Richard Wilson, president, CEO and director.
The retail chain has more than 200 stores and operates in 23 states.
___ (c)2014 The Salina Journal (Salina, Kan.) Visit The Salina Journal (Salina, Kan.) at www.saljournal.com Distributed by MCT Information Services
Back To NFVZone's Homepage