New York City For the second time in a month, 99 Cents Only stakeholder Akre Capital Management has demanded additional details regarding the discount chain’s turnaround plans, according to a regulatory filing on Monday.
Akre, which beneficially owns about 9.4 million shares, or a 13.4% stake, sent a letter to 99 Cents Only last month, criticizing its current strategy to stay in Texas, open new stores and retain excess cash.
According to the latest filing with the Securities and Exchange Commission, Akre spoke with management last week regarding the letter it sent to the board in January. Akre said it sent a follow-up letter “to provide additional detail and clarifications so that management and the board can better understand our requests and can respond appropriately.”
Akre again called for management to provide “concrete data and sound financial logic” to explain the rationale behind its current strategy.
By responding to Akre’s requests, 99 Cents Only Stores will be able to re-establish credibility and demonstrate to shareholders how it plans to manage assets and build value, Akre said. A representative for the company was not immediately available for comment.