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April 2, 2012 /PRNewswire/ -- Privet Fund LP ("Privet"), member of a group of shareholders collectively holding over 12.6% of the common stock of J. Alexander's Corp. ("J. Alexander's" or the "Company") (NASDAQ: JAX), today announced that it delivered a letter to the Company's independent directors.
The full text of the letter follows:
April 2, 2012E. Townes DuncanBrenda B. RectorJoseph N. Steakley
J. Alexander's Corporation3401 West End Avenue, Suite 260
Nashville, Tennessee 37202
Dear Independent Directors of J. Alexander's Corporation,
As significant shareholders of J. Alexander's Corporation ("J. Alexander's" or the "Company"), holding over 12.6% of the Company's common stock, we call on you to exercise your fiduciary duties as independent directors. These duties mandate that you work to create value for shareholders. Given the Company's historical inability to create stockholder value, we believe it is now time to give shareholders a voice in the strategic direction of J. Alexander's.
We find it troubling that, following the nomination of our highly qualified director candidates and our numerous attempts to more fully discuss our suggestions, no representative of Company management or current Director has sought to speak with any member of our group. There has been no attempt to interview our candidates for potential Board service, nor has there been any effort to initiate a constructive dialogue that could potentially avoid a protracted and costly proxy contest. How can the complete dismissal of the Company's largest shareholder group (not to mention the implementation of a more stringent poison pill) be construed as being in the best interests of shareholders? As independent directors of a widely-held public company, your fiduciary duties may at times be at odds with the interests of non-independent directors. At such times, you must not simply settle for what may satisfy your technical legal obligations, but rather strive to create results that advance shareholder interests.