Pantry shareholders group expresses concern

Houston - Concerned Pantry Shareholders (CPS), a group led by JCP Investment Management LLC and Lone Star Value Management LLC, together a significant shareholder of The Pantry Inc. has sent an open letter to the shareholders of The Pantry. The letter highlights what CPS terms the prolonged underperformance at The Pantry and the critical need for significant change in the company's board of directors.



The letter cites specific factors such as 10 years of negative total stockholder return amid $1.9 billion spent in acquisitions and capital expenses, management turnover including four CEOs in five years, and a debt load increase from $500 million to $900 million in the past 10 years.



CPS is urging shareholders to elect its three independent nominees, Todd Diener, James Pappas and Joshua Schechter, to serve on the board at the upcoming 2014 annual meeting. They would replace chairman of the board Ed Holman, chairman of the corporate governance and nominating committee Tom Murnane, and the chairman of the compensation committee Robert Bernstock.