Big 5 Sporting Goods Corporation defended itself against a dissident shareholder's charges that its board was mismanaging the company.
“Big 5 values the views of all stockholders and welcomes constructive input toward our shared goal of maximizing the long-term value of the company,” the retailer said in a statement released Wednesday, March 18 in response to long-time shareholder Stadium Capital Management LLC's announcement Tuesday that it will nominate three independent nominees to the retailers board at its upcoming annual meeting.
“Our board of directors and management team remain focused on continued execution of our proven business model, which has enabled us to consistently deliver solid profitability and return value to stockholders in the forms of dividends and share repurchases,” Big 5's statement continued. “Over our 60-year history, our business model has been to provide our customers with the optimal mix of value, selection, service and convenience, and this has enabled us to both successfully navigate economic and competitive headwinds and capitalize on product trends that are inherent to our business. We believe our efforts to refine our product offering to meet the demands of today's consumer, combined with diligent expense management and our controlled store growth strategy, have our company well positioned to drive meaningful value for our stockholders.”
Stadium Capital which owns over 11 percent of Big 5, said in a statement March 17 that Big 5's board “lacks a sufficient sense of urgency and the fresh perspectives necessary to unlock Big 5's full potential.” Stadium Capital also said it sent a letter to Big 5 President and CEO Steven G. Miller outlining its continuing concerns with the company's governance practices
In its statement Wednesday, Big 5 said its board of directors will present its recommendations with respect
to the election of directors in its definitive proxy statement, which
will be filed with the Securities and Exchange Commission and mailed to
all stockholders eligible to vote at the 2015 Annual Meeting of
Stockholders.
