Ancora Advisors Announces Majority Support for Withhold Campaign at J. Alexander's Based on Preliminary Tally

PRNewswire 20-Jun-2019 4:17 PM

CLEVELAND, June 20, 2019 /PRNewswire/ -- Ancora Advisors, LLC ("Ancora"), which beneficially owns approximately 8.76% of the outstanding shares of J. Alexander's Holdings, Inc. (NYSE:JAX) ("J. Alexander's" or the "Company"), making it one of the Company's largest shareholders, today announced that J. Alexander's shareholders have overwhelmingly endorsed Ancora's case for change at the Company's 2019 annual meeting.

Based on a preliminary tally, subject to the final certification of the voting results by the independent inspector of election, a clear majority of the outstanding shares of the Company withheld their votes from management's incumbent nominees, Timothy Janszen and Ronald Maggard, at the 2019 annual meeting.  The withhold votes for Messrs. Janszen and Maggard represented over 61% and 69% of the votes cast in the election of directors, respectively.  Excluding shares held by insiders and affiliates of the Company, Ancora believes that the withhold votes for Messrs. Janszen and Maggard constituted over 75% and 85% of the votes cast in the election of directors, respectively.

Frederick DiSanto, Chairman and Chief Executive Officer of Ancora, commented:

"We are extremely pleased that the preliminary results of J. Alexander's 2019 annual meeting demonstrate a resounding mandate from shareholders for Ancora's case for change at J. Alexander's.  That the Company would issue a statement claiming victory, in the face of a majority withhold vote on the incumbent directors (which was recommended by all three proxy advisory firms), and in the same year that shareholders voted overwhelmingly in favor of a shareholder proposal to adopt a majority voting standard in uncontested director elections (which was not recommended by the Board), shows how completely tone deaf the Board and management are.  The Company's characterization that the basis for shareholders' 'diminished support' of the incumbent directors was Ancora's withhold campaign and not its own dubious governance practices and stock price underperformance is yet another prime example of how this Board lacks accountability and just plain doesn't get it.

We have said all along that our withhold campaign was a platform for shareholders to send a strong message to the Board that the status quo is unacceptable and that the Board should explore strategic alternatives.  Shareholders have made their voices heard loud and clear, and now it is time for the Board to immediately conduct a strategic review process, in which Ancora fully intends to participate, and sell the Company to the highest bidder.  If the current directors, including Messrs. Janszen and Maggard, who clearly lack the support of shareholders, will not do this, then they should be immediately replaced by directors who will put shareholders' interests before their own and do everything in their power to maximize shareholder value." 

About Ancora Advisors

Ancora Holdings, Inc. is an employee owned, Cleveland, Ohio based holding company which wholly owns three separate and distinct SEC Registered Investment Advisers, Ancora Advisors, LLC, Ancora Family Wealth Advisors, LLC and Ancora Retirement Plan Advisors, Inc. and Inverness Securities LLC, a broker dealer. Ancora Advisors, LLC specializes in customized portfolio management for individual investors, high net worth investors, investment companies (mutual funds), pooled investments (hedge funds/investment limited partnerships), and institutions such as pension/profit sharing plans, corporations, charitable and "Not-for Profit" organizations, and unions. Ancora Family Wealth Advisors, LLC is a leading, regional investment and wealth advisor managing assets on behalf of families and high net-worth individuals. Ancora Retirement Plan Advisors, Inc. specializes in providing non-discretionary investment guidance for small and midsize employer sponsored retirement plans.

Contact

Ancora Advisors, LLC
James Chadwick 
216-825-4000

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SOURCE Ancora Advisors, LLC