NEW YORK, May 29 /CNW/ - Crescendo Partners LP ("Crescendo") announced
today that RiskMetrics Group - ISS Governance Services ("RiskMetrics"), a
leading independent proxy voting advisory and corporate governance services
firm used by financial institutions worldwide, has recommended that
shareholders of The Forzani Group Ltd. ("Forzani") vote on Crescendo's YELLOW
proxy to elect Barry Erdos to the board at Forzani's annual meeting on June
The RiskMetrics report notes:
- Crescendo has raised valid concerns about the board's oversight of
management and management's inability to deliver on its targets.
- Crescendo has met the burden of proving that the board change is
warranted since the incumbent board and management have not been
accountable for missing the previously set strategic targets or
failing to bring the corporate store metrics up to the franchise
- Crescendo nominee, Barry Erdos, has an extensive background in
softgoods/apparel retailing including footwear and accessories and
almost 70% of Forzani's sales come from softgoods and footwear.
- The Crescendo Nominee RiskMetrics has chosen to support will be more
likely to effect positive change because he may consider issues from
a different view point than the current directors.
- The representation of a significant shareholder on the board could
benefit Forzani by providing additional oversight in setting and
achieving of realistic targets.
In its report, RiskMetrics states that it believes the experience of
Barry Erdos in the intensely competitive US market could provide valuable
insights and a fresh perspective to the board of Forzani.
Eric Rosenfeld, managing member of Crescendo, stated "We are pleased with
the support offered by RiskMetrics and their belief that Crescendo's interests
are aligned with those of other shareholders. We also continue to strongly
believe that Forzani's Board doesn't have sufficient capital market and
transactional experience, and that David Sgro will add significant value to
In response to management's concern of the removal of Henri Drouin from
the board, RiskMetrics noted with only minority representation Crescendo would
clearly not control the board. In the event that Crescendo is successful, even
without Crescendo's support, the incumbent directors could immediately move to
appoint another director (Mr. Drouin, for example) to the board.
You can support the Crescendo nominees by voting the YELLOW proxy form
shareholders received in the mail. If you have already voted using the
management "white" proxy you have every right to change your vote by simply
executing the YELLOW Proxy. It is only the latest dated proxy that will count.
Your YELLOW proxy must be voted by any one of the methods described on the
form no later than 10:00 a.m. (Toronto time) on Monday June 8, 2009. To ensure
your vote is received in sufficient time, we recommend you vote by internet,
telephone or fax.
If you have any questions and/or need assistance, please call Laurel Hill
Advisory Group at 1-888-726-9085 or outside North America call collect at
For further information:
For further information: Eric S. Rosenfeld, Managing Member, Crescendo
Partners LP, Contact info: Eric Rosenfeld, erosenfeld "at"
crescendopartners.com, (212) 319-7676