Charlotte Russe Holding, Inc. (Nasdaq: CHIC) announced today that
RiskMetrics Group (formerly ISS) and Glass Lewis & Co., two leading
independent proxy advisory firms, have recommended that their clients
support all of Charlotte Russe’s director nominees at the Company’s 2009
Annual Meeting of Stockholders on April 28, 2009. Both RiskMetrics and
Glass Lewis recommended that shareholders do not vote for the slate put
forth by KarpReilly LLC (“KarpReilly”). KarpReilly subsequently
announced that it has withdrawn its nominees to the Charlotte Russe
Board.
Jennifer Salopek, Non-Executive Chairman of the Board said: “We are
extremely pleased that KarpReilly has decided to withdraw its three
nominees, allowing the Board and management to fully concentrate our
efforts on transforming the Company while carrying out a competitive
sale process. We are also gratified to have earned the support of two
leading independent proxy advisory firms, who recently commended our
progress and recommended that shareholders reelect all seven Charlotte
Russe Directors.
“Over the past several months, our Board and new management team have
taken significant steps to transform Charlotte Russe into a top-tier
specialty retailer. We are committed to continuing this progress while
proceeding with our sale process to ensure that we are taking all steps
to maximize value for our shareholders.”
In recommending that shareholders reelect the Charlotte Russe Board,
RiskMetrics Group said the following:
“We view that the board has taken appropriate action in light of
deteriorating performance to review strategic alternatives and install a
new management team with relevant industry experience. Further,
preliminary results of these nascent efforts have exceeded company
guidance and analyst expectations and received a strong positive
reaction from the market. As such, we recommend shareholders vote on the
WHITE card and vote FOR the election of all incumbent nominees.”
In its recommendation, Glass Lewis & Co. said the following:
“In our opinion, the new management team has taken positive steps to
address the Company’s operating troubles and has shown progress in the
most recent quarter.”
“Even if a strategic agreement is not completed, there appears to be a
positive change taking place under the current leadership.
