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Macellum and Ancora File Definitive Proxy Statement and Send Letter to SpartanNash Shareholders

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Macellum Advisors and Ancora Holdings, holding approximately 4.5% of SpartanNash's shares, demand urgent boardroom changes due to years of financial underperformance and strategic failures. They have nominated three independent candidates for the board elections, citing a $1 billion in idle real estate and ineffective corporate strategy as key issues. The Investor Group urges shareholders to vote using the BLUE Proxy Card to foster a credible operating plan and explore value creation alternatives amid increasing interest from potential buyers.

Positive
  • Investor Group owns approximately 4.5% of SpartanNash shares, indicating significant shareholder engagement.
  • Nomination of three independent and qualified candidates for board election to drive change.
  • Potential interest from credible suitors for SpartanNash's acquisition, indicating external validation of its value.
Negative
  • Failure to implement basic operating initiatives has led to poor long-term operating and financial results.
  • Significant underperformance in revenue and share price, signaling a critical inflection point.
  • Lack of a clear strategy and history of failed acquisitions under current board leadership.

Believes Shareholder-Driven Change Is Urgently Needed in SpartanNash's Boardroom Following Years of Financial Underperformance and Strategic Missteps

Contends a Properly Refreshed Board Can Oversee the Development of a Clear and Credible Operating Plan for Enhanced Value Creation and Objectively Compare it to Strategic Alternatives

Urges Shareholders to Vote on the BLUE Proxy Card to Elect the Investor Group's Three Highly Qualified Director Candidates, Who Collectively Possess Deep Industry Experience and Strategic Planning Acumen

NEW YORK--(BUSINESS WIRE)-- Macellum Advisors GP, LLC and Ancora Holdings Group, LLC (together with their affiliates, the “Investor Group” or “we”), which beneficially own approximately 4.5% of the outstanding common shares of SpartanNash Company (NYSE: SPTN) (“SpartanNash” or the “Company”), today announced they have filed their definitive proxy statement with the U.S. Securities and Exchange Commission and sent a letter to the Company's shareholders. The Investor Group has nominated three highly qualified and independent candidates for election to SpartanNash's Board of Directors (the "Board"). The Investor Group's letter to fellow shareholders can be viewed here.

Jonathan Duskin, Managing Partner of Macellum Capital Management, LLC, and Fredrick D. DiSanto, Chairman and Chief Executive Officer of Ancora Holdings Group, LLC, issued the below statement:

"Our robust analysis and engagement have led us to believe SpartanNash's leadership is wed to a flawed corporate structure and has failed to implement basic operating initiatives while leaving $1 billion of owned real estate sitting idle on the balance sheet, resulting in unjustifiably poor long-term operating and financial results. We contend the blame falls squarely on the SpartanNash Board and its long-tenured members, who have presided over numerous strategic missteps, significant c-suite turnover and the lack of a clear and credible operating strategy.

In our view, SpartanNash is at a critical inflection point following years of operational and share price underperformance, lagging revenue and sales growth, poor capital allocation decisions and a long history of failed acquisitions under the incumbent Board. We believe many credible suitors are interested in acquiring SpartanNash. At a time when major grocery and food distribution players are embarking on their own strategic review processes, SpartanNash should immediately explore all paths to value creation before this round of consolidation ends.

In light of these numerous concerns, we contend shareholder-driven change is urgently needed in the boardroom. We believe a properly refreshed Board, equipped with our highly qualified nominees, can oversee the development of a credible operating plan and objectively weigh it against available strategic alternatives to determine the best avenue toward shareholder value creation. Our slate – which includes Jonathan Duskin, John E. Fleming and Michael J. Lewis – has the right mix of corporate governance experience, finance acumen, grocery and food distribution expertise, strategic planning knowhow and sorely needed ownership perspectives to ensure the Company finally has an effective, transparent plan for delivering enhanced value. We look forward to giving shareholders the opportunity to vote for a better path forward for SpartanNash at this year's Annual Meeting."

***

About Macellum

Macellum Capital Management is an activist investment firm, with deep expertise in the retail and consumer sectors, founded in 2009 by Jonathan Duskin. Macellum invests in undervalued companies that it believes can appreciate significantly in value as a result of a change in corporate strategy or improvements in operations, capital allocation or corporate governance. Macellum’s investment team, advisors and network of industry experts draw upon their extensive strategic, operating and boardroom experience to assist companies in designing and implementing initiatives to improve long-term shareholder value. Macellum prefers to constructively engage with management to improve its governance and performance for the benefit of all shareholders. However, when management is entrenched, Macellum has run successful proxy contests to effectuate meaningful change. Macellum has run successful election contests to effectuate meaningful change at many companies, including at The Children’s Place Inc., Citi Trends, Inc., Bed Bath and Beyond and Big Lots, Inc. Learn more at www.macellumcapitalmanagement.com.

About Ancora

Founded in 2003, Ancora Holdings Group, LLC offers integrated investment advisory, wealth management and retirement plan services to individuals and institutions across the United States. The firm's comprehensive service offering is complemented by a dedicated team that has the breadth of expertise and operational structure of a global institution, with the responsiveness and flexibility of a boutique firm. For more information about Ancora, please visit https://ancora.net.

For Investors:

Saratoga Proxy Consulting

John Ferguson / Joe Mills, 212-257-1311

info@saratogaproxy.com

For Media:

Longacre Square Partners

Casie Connolly / Bela Kirpalani, 646-386-0091

macellum@longacresquare.com

Source: Macellum Advisors GP, LLC and Ancora Holdings Group, LLC

FAQ

What is the main concern addressed by Macellum and Ancora regarding SpartanNash?

They highlight years of financial underperformance and the need for urgent changes in the boardroom.

What percentage of SpartanNash shares do Macellum and Ancora own?

They own approximately 4.5% of the outstanding common shares.

Who are the candidates nominated by the Investor Group for SpartanNash's board?

The nominees include Jonathan Duskin, John E. Fleming, and Michael J. Lewis.

Why do the Investor Group believes SpartanNash board needs refreshing?

They argue that the current board has failed to implement effective strategies and left significant assets underutilized.

How can SpartanNash shareholders vote for the proposed board changes?

Shareholders are urged to vote using the BLUE Proxy Card.

SpartanNash Company

NASDAQ:SPTN

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625.14M
33.24M
1.44%
85.21%
3.07%
Food Distribution
Wholesale-groceries, General Line
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United States of America
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