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
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SOURCE Hestia Capital Management, LLC & Permit Capital Enterprise Fund, L.P.