PITTSBURGH, April 27, 2020 /PRNewswire/ -- Hestia
Capital Partners LP, Permit Capital Enterprise Fund, L.P. and their
affiliates (the "Investor Group"), who beneficially own
approximately 7.2% of the outstanding common stock of GameStop
Corp. (the "Company") (NYSE: GME), announced today that they have
mailed a definitive proxy statement, including a WHITE proxy card,
to stockholders in conjunction with the Company's 2020 annual
meeting of stockholders (the "2020 Annual Meeting"), which is
expected to take place virtually in mid-June.
The Investor Group also sent a letter to its fellow stockholders
detailing why it believes GameStop's recent Board refreshment is
insufficient and highlighting the steps the Company must take to
maximize value for stockholders. The Investor Group believes
the Board remains primarily composed of directors with traditional
retail backgrounds and continues to lack critical skillsets and
needed perspectives. The Investor Group believes the Board
must add stockholder-aligned directors that have the financial
acumen, turnaround experience and stockholder perspective to drive
real change at GameStop.
If elected, the Investor Group's nominees will push the Company
to reduce its bloated cost structure, fix misaligned executive
compensation, quickly address liquidity concerns, focus on
optimizing its unique gaming assets, and create a positive
narrative about the Company's future. While the Investor
Group acknowledges the timing of this proxy contest is unfortunate
due to the COVID-19 crisis, the lack of diversity of perspectives
on the Board and the Board's resistance to engage with the Investor
Group to avoid a contested election, has compelled the Investor
Group to move forward with its nomination.
The Investor Group urges stockholders to support its call for
change at the Company by voting the WHITE proxy to elect its slate
of two experienced nominees, Paul J.
Evans and Kurtis J. Wolf, at
the 2020 Annual Meeting.
The full text of the letter can be found here:
https://www.restoregamestop.com/letters-press-releases
The definitive proxy statement and letter can also be accessed
on the Investor Group's website:
https://www.restoregamestop.com/
If you have any questions about how to vote, the Investor
Group's proxy solicitor Saratoga Proxy Consulting LLC can be
reached at info@saratogaproxy.com or (888) 368-0379.
About Hestia Capital
Hestia Capital is a long term focused, deep value investment
firm that typically makes long-term investments in a narrow
selection of companies facing company-specific, and/or industry,
disruptions. Hestia seeks to leverage its General Partner's
expertise in competitive strategy and capital markets to identify
attractive situations within this universe of disrupted companies.
These companies are often misunderstood by the general investing
community and provide the 'price dislocations' which allows Hestia
to identify, and invest in, highly attractive risk/reward
investment opportunities.
About Permit Capital Enterprise Fund
The Permit Capital Enterprise Fund, through its management
company, follows an investing philosophy that seeks to identify
securities trading at a discount to intrinsic value. The investment
approach is bottom-up and focused on the valuation of the
securities of individual issuers. The management company's
assessment of intrinsic value is based on its own fundamental
research as well as numerous sources of publicly available
information.
Contacts:
Kurt Wolf at 724-687-7842
John Broderick at 610-941-5025
View original
content:http://www.prnewswire.com/news-releases/investor-group-urges-stockholders-to-vote-for-change-at-gamestops-2020-annual-meeting-by-electing-its-two-stockholder-aligned-directors-301047343.html
SOURCE Hestia Capital Management, LLC & Permit Capital
Enterprise Fund, L.P.