NEW YORK, June 6, 2014 /PRNewswire/ -- Clinton Group,
Inc. announced that research firm ISS Proxy Advisory Services
("ISS") recommended yesterday that ValueVision Media (NASDAQ: VVTV)
stockholders support change in the composition of ValueVision's
Board of Directors by voting on the GOLD proxy card at this year's
annual meeting. ISS advises approximately 1700 institutional
investors, pension funds and mutual funds across the globe on
annual and special meeting votes.
ISS noted that Clinton Group had "made a case for change at the
board level [and] provided the outline of a strategic plan which
appears to address the most significant failures identified in the
course of this proxy contest."
Accordingly, ISS recommended that its clients vote
for none of the incumbent directors and instead use the GOLD
proxy card sent to shareholders by the Clinton Group to vote at
this year's annual meeting.
"We are pleased that ISS recognizes the importance of change at
ValueVision," said Gregory P. Taxin,
President of Clinton Group. "ValueVision has a terrific opportunity
to build a profitable and valuable business. We believe that new
directors can help ensure ValueVision takes full advantage of this
opportunity and creates significant value for shareholders."
ISS' comprehensive research report also says:
- "Clearly, ValueVision is not monetizing its distribution as
effectively [as HSN and QVC]. … The disconnect in household
monetization appears to be driven by ValueVision's misaligned
merchandise mix, a lack of proprietary brands and outdated
programming."
- "ValueVision has been shifting product mix over the past
several years, but the change has been slow and the company missed
its own commitments for greater category shift by 2013."
- "[A]nother factor lowering ValueVision's per household
monetization compared to peers is its product mix that relies
heavily on nationally available brands. … A reliance on nationally
available brands does not appear to be a long-term viable
strategy."
- "[L]ooking at the programming [schedule] … it is easy to see
why QVC and HSN are attracting more viewers to [their] more
differentiated, diversified and engaging content. … [T]he company
needs to diversify and create more engaging programming and
programming personalities."
- "In order for ValueVision to generate significant operating
leverage off its high percentage of fixed costs, the company needs
to increase revenues through improved household monetization."
- Clinton Group "has laid out a plan to create proprietary
brands, improve product mix and develop creative programming, which
appears needed at ValueVision."
The ValueVision annual meeting will be held on June 18, 2014.
"I read with interest ValueVision's press release today in which
the Company expresses its view that ISS does not understand the
Company or its industry," said Mr. Taxin. "While shooting the
messenger is always tempting, it is completely unwarranted in this
instance. The ISS lead analyst, a CFA charter holder and former
media and advertising research analyst for Lazard and Citibank, is
eminently qualified to understand, and did understand, the issues
in this important proxy contest."
Clinton encourages its fellow shareholders to use the GOLD proxy
card, as ISS has recommended, when voting at this year's annual
meeting and to vote for the Clinton nominees. ISS specifically
recommended a vote on the GOLD card in favor of Thomas Beers, Mark
Bozek, Bob Rosenblatt and
Fred Siegel.
Clinton Group also recommends that ValueVision shareholders
review the Clinton Group definitive proxy materials, video
presentation, shareholder letters and slide deck, all of which are
available at www.AddValueAndVision.com.
Shareholders with questions should contact Bruce Goldfarb or Lydia
Mulyk at Okapi Partners LLC at (212) 297-0720, Toll-Free
(855) 305-0857, or VVTV@okapipartners.com.
About Clinton Group, Inc.
Clinton Group, Inc. is a Registered Investment Advisor based
in New York City. The firm has been investing in global
markets since its inception in 1991 with expertise that spans a
wide range of investment styles and asset classes.
Important Additional Information
CLINTON RELATIONAL OPPORTUNITY MASTER FUND, L.P., CLINTON
RELATIONAL OPPORTUNITY, LLC, GEH CAPITAL, INC., CLINTON SPECIAL
OPPORTUNITIES MASTER FUND, LTD., CHANNEL COMMERCE PARTNERS, L.P.,
CLINTON GROUP, INC., GEORGE E. HALL
(COLLECTIVELY, "CLINTON") THOMAS D.
BEERS, MARK BOZEK,
RONALD L. FRASCH, THOMAS D. MOTTOLA, ROBERT ROSENBLATT AND FRED
SIEGEL (TOGETHER WITH CLINTON, THE "PARTICIPANTS") AND/OR CERTAIN
AFFILIATED PARTIES HAVE FILED WITH THE SECURITIES AND EXCHANGE
COMMISSION (THE "SEC") A DEFINITIVE PROXY STATEMENT AND
ACCOMPANYING FORM OF PROXY CARD TO BE USED IN CONNECTION WITH THE
PARTICIPANTS' SOLICITATION OF PROXIES FROM THE STOCKHOLDERS OF
VALUEVISION MEDIA, INC. (THE "COMPANY") FOR USE AT THE COMPANY'S
2014 ANNUAL MEETING OF STOCKHOLDERS (THE "PROXY SOLICITATION"). ALL
STOCKHOLDERS OF THE COMPANY ARE ADVISED TO READ THE DEFINITIVE
PROXY STATEMENT AND OTHER DOCUMENTS RELATED TO THE PROXY
SOLICITATION BY THE PARTICIPANTS BECAUSE THEY CONTAIN IMPORTANT
INFORMATION, INCLUDING ADDITIONAL INFORMATION RELATED TO THE
PARTICIPANTS. THE DEFINITIVE PROXY STATEMENT AND ACCOMPANYING PROXY
CARD HAVE BEEN FURNISHED TO SOME OR ALL OF THE COMPANY'S
STOCKHOLDERS AND ARE, ALONG WITH OTHER RELEVANT DOCUMENTS,
AVAILABLE AT NO CHARGE ON THE SEC'S WEB SITE AT
HTTP://WWW.SEC.GOV/. IN ADDITION, OKAPI PARTNERS LLC, CLINTON'S
PROXY SOLICITOR, WILL PROVIDE COPIES OF THE DEFINITIVE PROXY
STATEMENT AND ACCOMPANYING PROXY CARD WITHOUT CHARGE UPON REQUEST
BY CALLING (212) 297-0720 OR TOLL FREE AT (855) 305-0857.
ADDITIONAL INFORMATION ABOUT THE PARTICIPANTS AND A DESCRIPTION
OF THEIR DIRECT OR INDIRECT INTERESTS BY SECURITY HOLDINGS IS
CONTAINED IN THE DEFINITIVE PROXY STATEMENT ON SCHEDULE 14A FILED
BY CLINTON ON MAY 13, 2014 AND IN THE DEFINITIVE ADDITIONAL
MATERIALS ON SCHEDULE 14A FILED BY CLINTON
ON MAY 22, 2014 AND
JUNE 6, 2014. THESE DOCUMENTS CAN BE
OBTAINED FREE OF CHARGE FROM THE SOURCES INDICATED ABOVE.
SOURCE Clinton Group, Inc.