Los Angeles, CA -- (ReleaseWire) -- 08/28/2018 --Today Chris Komatinsky released the following open letter to Rite Aid Corporation Shareholders (NYSE:RAD):
On Aug 8th, Rite Aid announced the joint termination of the merger agreement with Albertsons, made a statement that "we have heard the views expressed by our stockholders", announced that the Rite Aid board of directors (BOD) is evaluating governance changes at the company, and stated that Rite Aid will continue to engage with stockholders to ensure alignment between the company and its investors. As of Aug 27th, no governance or management changes, including no interim changes, have been announced. No one from Rite Aid has even tried to reach out to our large group of individual shareholders to discuss proposed changes. Has Rite Aid reached out to institutional shareholders? Blackrock? Highfields? Anyone? Is Rite Aid Management and the BOD just circling the wagons with an October 30 Annual Meeting hoping for shareholder anger over the waste of money and time to dissipate or be diluted through shareholder turnover?
I'd recommend that Rite Aid management and the BOD make an urgent visit to the nearest Rite Aid for a hearing check/hearing aids as the shareholder rejection (likely by a landslide) of the poorly thought out and self-serving merger is a much louder message than you are hearing. Typically in situations with this large a chasm between shareholders and Management/BOD, there would have been some IMMEDIATE (within a week) actions following the shareholder rejection of the merger - resignation/firing of the CEO and replacement of 2 or 3 BOD members with representatives from large institutional shareholders.
In response to the lack of action by Rite Aid Management and BOD who we have no faith to act in the best interest of Rite Aid shareholders, we're organizing shareholders again to ensure that significant change occurs at the Oct 30th Annual Meeting or sooner. If you support this effort, please visit https://sites.google.com/view/rightriteaid to log your name and shareholding or contact me by e-mail or phone.
After years of underwhelming operational performance and two failed merger attempts, it's time to right Rite Aid with new leadership that's up to the challenges of today and tomorrow and works in the best interests of Rite Aid shareholders.
Feel free to contact me if you have any questions.
Individual Rite Aid Stockholder