Citi Trends Tries to Fend Off Directors Linked With Failed Retailers

This is part of a series of stories that comprise TheStreet's Blue Chip Studio, which will illuminate issues related to corporate board performance, activism, dealmakers and personalities revealed by analysis of data generated by BoardEx, a business unit of TheStreet.

Citi Trends (CTRN) , which operates a chain of discount clothing stores, is trying to fend off a bid by Macellum Advisors to install a slate of directors who have an extensive history of failed retail experience.

Macellum, which owns about 4% of Citi Trends' shares, proposed in February that the retailer add two independent directors, stating a strong preference for Macellum CEO Jonathan Duskin. Citi Trends rejected the offer after the board "determined that changing the board as Mr. Duskin had proposed was not in the best interest of Citi Trends and its stockholders," the company stated.

In response, Macellum submitted on March 9 a proposal to nominate Duskin, 49, and three other director candidates: Dyan Jozwick, 59, Lana Cain Krauter, 65, and Paul Metcalf, 56, to Citi Trends' board as well.

Duskin's work history includes stints at Lehman Brothers, until 2002, SAC Capital and Prentice Capital Management. Lehman Brothers declared bankruptcy in 2008, and SAC Capital has since become Point72 Asset Management. Duskin is a former director at Wet Seal Inc. and Whitehall Jewelers, both of which have filed for bankruptcy, and of KB Toys, which went out of business in 2009.

The other nominees' experience spans retailers including Kitson, dELiA*s, Sears  (SHLD) , Bebe Stores, J.C. Penney  (JCP) , Burlington Stores  (BURL) and TJX Cos.  (TJX) .

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