NEW YORK--(BUSINESS WIRE)--Nathan G. Miller and Peter O’Malley (the “Investors”), collective holders of approximately 9% of the outstanding common stock of Destination Maternity Corporation (Nasdaq: DEST) (“Destination Maternity” or the “Company”), today released the following statement in response to the Company’s most recent open letter to shareholders issued on May 21st. For more information, investors are encouraged to visit: www.destfacts.com.
“Clearly, our message that the Destination Maternity Board needs fresh perspectives and diversity has been gaining traction with investors. However, it is unfortunate that it has taken the threat of losing a proxy contest to push the Company’s Board to commit to adding additional female directors. Further, we find it highly disingenuous that Destination Maternity implies they are “reaffirming” a commitment to gender diversity on the Board, given that they have had ample opportunity to achieve this but have failed to do so. Even more egregious is the fact that, when we previously recommended adding two highly-qualified female Board members, the Company responded by adding two men.
We believe gender diversity in the boardroom is critical and that is why our slate of four highly-qualified nominees includes three women – Holly N. Alden, Marla A. Ryan and Anne-Charlotte Windal – along with Christopher B. Morgan. In our view, a majority female Board would be truly advantageous for the Company, given its business and customer base.
Finally, while the Company’s commitment to engaging more with shareholders would certainly be a good development in a vacuum, the fact that it comes in the final days of a proxy contest reeks of insincerity. We can only ask, would the Board make a similar commitment of its own volition and without the threat of potentially losing their seats and control at the upcoming Annual Meeting?
It is time for shareholders to send a message that Destination Maternity must reverse the years of mismanagement and underperformance the Company has suffered. We believe that the Company has great potential and that our turnaround plan can meaningfully improve shareholder value. We urge you to vote on the GOLD proxy card today in support of our four highly-qualified nominees, who will be valuable independent voices for the best interests of all shareholders.”