PR Newswire
HOUSTON, May 30, 2017
HOUSTON, May 30, 2017 /PRNewswire/ -- JCP Investment Management, LLC, together with its affiliates and the other participants in its solicitation (collectively, "JCP" or "we"), collectively one of the largest stockholders of Fiesta Restaurant Group, Inc. ("Fiesta" or the "Company") (NASDAQ: FRGI), with aggregate ownership of approximately 9.0% of the Company's outstanding shares, today responded to Institutional Shareholder Services Inc.'s ("ISS") recommendation regarding the election of director candidates to Fiesta's Board of Directors (the "Board') at the Company's upcoming Annual Meeting to be held on June 7, 2017.
JCP is pleased that ISS recognized many of the areas of concern that JCP raised in its campaign for change, including the Board's ineffective oversight and lack of restaurant industry experience that resulted in the destruction of significant value over the past several years. However, JCP believes that ISS failed to recognize that Fiesta's reactive responses to JCP's involvement does not make the incumbent directors any less culpable for the destruction of stockholder value that occurred under their watch.
Commenting on the Board's oversight of the Company during the past several years, ISS noted:
ISS also recognized Fiesta's declining performance and was critical of its failed expansion efforts, stating:
ISS also noted that the Board took action "in line with what the dissident advocated: keeping Taco Cabana within the company, reversing Pollo Tropical's expansion in Texas, and adding board members with restaurant operations experience." In addition, ISS stated that "…while the board's reaction may have been a few quarters late, it has taken vigorous corrective actions," but also commented that:
ISS also recognized the value of JCP's highly qualified nominees, John B. Morlock and James C. Pappas, commenting that:
JCP strongly believes that Fiesta stockholders deserve to be represented by directors who will consistently and proactively take action in their best interests…not directors who need to be publicly pressured to do so.
FIESTA STOCKHOLDERS – VOTE TO RESTORE ACCOUNTABILITY AND THE VALUE OF YOUR INVESTMENT BY VOTING THE GOLD PROXY CARD TODAY
The time for accountability is now. We urge stockholders to send a clear message to the Board that Fiesta's continued underperformance and pattern of entrenchment will not be tolerated by voting the GOLD proxy to elect our highly qualified candidates John B. Morlock and James C. Pappas.
VOTE THE GOLD PROXY CARD TO ELECT JOHN B. MORLOCK AND JAMES C. PAPPAS TODAY
If you have any questions, or require assistance with your vote, please contact InvestorCom, toll-free at (877) 972-0090, call direct at (203) 972-9300
About JCP Investment Management:
JCP Investment Management, LLC is an investment firm headquartered in Houston, TX that engages in value-based investing across the capital structure. JCP follows an opportunistic approach to investing across different equity, credit and distressed securities largely in North America.
Investor Contacts:
James C. Pappas
JCP Investment Management, LLC
(713) 333-5540
John Glenn Grau
InvestorCom
(203) 972-9300
Media Contact:
Gotham Communications
Bill Douglass, (646) 504-0890
bill@gothamcomm.com
1 Permission to quote from the ISS report was neither sought nor obtained. Emphases have been added by JCP.
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SOURCE JCP Investment Management, LLC
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