PR Newswire
HOUSTON, June 7, 2017
HOUSTON, June 7, 2017 /PRNewswire/ -- JCP Investment Management, LLC (together with its affiliates, "JCP"), a significant stockholder of Fiesta Restaurant Group, Inc. ("Fiesta" or the "Company") (NASDAQ:FRGI), with ownership of approximately 3.0% of the Company's outstanding shares, commented on Fiesta's 2017 Annual Meeting held earlier today and the positive developments that have occurred at the Company in connection with JCP's proxy contest.
For nearly a year, JCP has relentlessly fought to bring attention to (i) Fiesta's significant financial and operational underperformance under the leadership of an unengaged Board of Directors (the "Board"), (ii) the lack of restaurant industry experience on the Board, (iii) the strategic shortcomings of the Company, (iv) the Company's poor corporate governance practices and (v) the apparent lack of alignment between the Board and Fiesta stockholders.
Although JCP is disappointed with the election results, it is pleased that its campaign has served as the catalyst for the following positive developments, all of which occurred after JCP's public involvement:
While these are steps in the right direction, JCP believes there is significant work to be done and more changes are necessary to drive stockholder value. Given the continued refusal of any incumbent director to step down from the Board despite the significant destruction of stockholder value over the past several years, JCP continues to believe that accountability is lacking in the boardroom. JCP intends to closely monitor Fiesta's performance and the execution of its Strategic Renewal Plan. In its evaluation of the Company moving forward, JCP calls on Fiesta to answer the following questions:
It is JCP's hope that significant progress is made without further need for public pressure from JCP; however, JCP will not hesitate to take further action that it believes is necessary to maximize stockholder value and ensure that the Company is being run in the best interests of stockholders.
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 Contact:
James C. Pappas
JCP Investment Management, LLC
(713) 333-5540
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/jcp-comments-on-fiesta-restaurant-groups-annual-meeting-and-improvements-due-to-jcps-proxy-contest-300470517.html
SOURCE JCP Investment Management, LLC
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