Wednesday, August 22, 2012

A New Board & CEO At Syms? Yes, Please!

Last night, this was filed in the Syms bankruptcy case. Of note, Andrew Sole will be a board member and Lauren Krueger (also of Esopus) will be CEO of the company (scroll down to exhibit 2, or scroll beneath my disclaimer). The hearing in regard to the plan is for the 29th of the month and will be interesting to see the outcome of. I'd imagine that there won't be any sweeping modifications to the plan.

I am really excited at the prospects that the company has. Furthermore, I am very interested in the company again. The rights offering to cash out Marcy Syms was simply genius. The board and managment that the new company will likely have is no doubt, top notch and incentivized to help shareholders more than ever, due to the previously mentioned rights offering.

The potential the the Trinity location has is huge and a great way to bet on real estate. While I, through an investment partnership, own less Syms that I ever have, I am strongly debating buying more as I have always been a fan of oddish real estate bets.

According to the plan, there is still a board vacancy, so get your applications ready. ;)

Disclosure/Disclaimer: I own shares of SYMS and SYTE. I reserve the right to change my positions at any time. This post is my opinion. Always do a ton of your own research before even contemplating anything that I say, do, write, or so much as think about.




Directors and Officers of Reorganized Debtors


Identity and affiliation of each known individual proposed to serve, after the Effective Date, as a

director or officer or trustee of Reorganized Syms.

(a) Andrew Sole - Mr. Sole shall serve as a director designated by the Equity Committee.
Mr. Sole is a shareholder of Syms Corp. and a Founder and Managing Member of Esopus
Creek Advisors, LLC, the general partner of Esopus. Funds managed by Esopus are
shareholders of Syms, a member of the Equity Committee, and a Backstop Party under
the Equity Commitment Agreement. Mr. Sole serves as a representative of Esopus on the
Equity Committee, and in that capacity, serves as the chair of the Equity Committee.
Prior to the founding of Esopus in August 2005, Mr. Sole was a managing member at two
predecessor funds, Esopus Creek Partners LLC and Esopus Creek Capital LLC, from
March 2003 until July 2005. From 1991- 2002 Mr. Sole was a principal and founding
partner of LSY Associates, a New York based private investment partnership, which
invested primarily in small and mid-capitalization public companies. Mr. Sole has over
twenty years of investment management experience, including investments in distressed
and non-distressed assets. During his tenure at Esopus, Mr. Sole has represented the
Esopus funds in various bankruptcy cases including as a member of the Official Creditors
Committees of Refco Inc., Fedders Inc., and Six Flags, Inc. Mr. Sole also served on the
Official Committee of Equity Holders in the USG Corp. bankruptcy case. Mr. Sole
received his J.D. from the Benjamin N. Cardozo School of Law at Yeshiva University
where he graduated cum laude and was a member of the Order of the Coif honor society.
Mr. Sole received his B.S. in Mathematics from Union College in Schenectady, New
York.

(b) Marina Shevyrtalova - Ms. Shevyrtalova shall serve as a director designated by the
Equity Committee and/or the Backstop Parties under the Equity Commitment Agreement.
Ms. Marina Shevyrtalova is currently the Portfolio Manager and a member of the
Investment Committee at DS Advisors, LLC, which is a shareholder of Syms, a member
of the Equity Committee, and a Backstop Party under the Equity Commitment
Agreement. Ms. Shevyrtalova serves as a representative of DS Advisors on the Equity
Committee. Prior to joining DS Advisors in 2009, Ms. Shevyrtalova was part of the
investment team at Barington Capital Group, an investment firm experienced in taking
active roles in assisting companies in creating and improving shareholder value. Prior to
that, Ms. Shevyrtalova was a Portfolio Manager and Vice President at Lehman Brothers
Equity Capital Management Group where she focused on investing in undervalued
equities, special situations, and turnarounds. Ms. Shevyrtalova started her career in
capital markets as an investment banking professional. Ms. Shevyrtalova graduated with
high honors from New York University with dual degrees in Finance and Statistics and
Operations Research and she received her MBA from Harvard Business School.

(c) Richard “Mick” McGuire - Mr. McGuire shall serve as a director designated by the
Equity Committee and/or the Backstop Parties under the Equity Commitment Agreement.
Mr. McGuire is the Founder and Managing Member of Marcato Capital Management,
which is a shareholder of Syms, a member of the Equity Committee, and a Backstop
Party under the Equity Commitment Agreement. Mr. McGuire serves as a representative
of Marcato on the Equity Committee. As a Managing Member of Marcato, Mr. McGuire
manages a select number of passive and activist investments across all industries with aprimary focus on opportunities in middle-market public equities. Prior to forming
Marcato, Mr. McGuire was with Pershing Square Capital Management. He has spent his
entire career in private and public equity investing and holds an MBA from Harvard
Business School and a Bachelor’s degree in Economics from Princeton University.

(d) Alan Cohen - Mr. Cohen shall serve as the director designated by the Creditors’
Committee. Mr. Cohen is the Chairman and senior member of Abacus Advisors Group
LLC (“Abacus Advisors”). The Creditors’ Committee retained Abacus Advisors as its
real estate and asset liquidation consultants in these Chapter 11 Cases. Mr. Cohen has
more than 30 years of experience working with distressed businesses in all aspects of
their management and operations, serving as a consultant and advisor to numerous
Fortune 500 companies and many leading banks and financial institutions. He has been
an active participant in seminars on turnaround management and has lectured extensively
on restructuring and asset-based lending. Mr. Cohen presently serves as the Chief
Restructuring Officer of Filene’s Basement, Inc. and as the Residual Trustee of both the
KBTI Residual Trust (KB Toys) and the Friedman’s Creditor Trust. He has also served
as the court-appointed chapter 11 operating trustee of numerous companies, including
County Seat Stores and apparel manufacturer Russ Togs, which he operated and
subsequently sold to Liz Claiborne, Inc. Additionally, Mr. Cohen has served in a variety
of senior management capacities, including roles as Management Consultant to apparel
manufacturer and retailer Aileen, Inc., and as CEO of Health-tex, a major children’s wear
manufacturer which he operated for approximately one year and sold to VF Corporation.
Mr. Cohen has a Bachelor’s degree in Accounting from New York University.

(e) Independent Director - the fifth director shall be (A) designated and appointed on the
Effective Date by the mutual agreement of the Equity Committee and the Creditors’
Committee and (B) following the Effective Date, shall be nominated by the EC Directors
with the reasonable consent of the holder of the Series A Preferred Stock and, following
such nomination, shall be elected by the holder of the Series A Preferred Stock, voting as
a separate class to the exclusion of the holders of Common Stock and any other Preferred
Stock (the “Independent Director”), provided that such director shall (I) meet the
requirements of an independent director under the standards of the NASDAQ Stock
Market and (II) not be an Affiliate of (w) any Unsecured Creditor that holds a Claim in
an amount that is greater than $50,000, (x) any holder of two percent or more of the
Corporation’s Common Stock, (y) any Backstop Party or (z) any person or entity
included in the definition of the Redeemed Stockholder. As such, the initial Independent
Director will be a person mutually acceptable to the Equity Committee and the Creditors
Committee.

(f) Chief Executive Officer - Lauren Krueger shall serve as Chief Executive Officer of
Reorganized Syms and will receive a salary of $250,000 per year. Ms. Krueger is a
managing member of and joined Esopus Creek Advisors LLC, the General Partner of
Esopus Creek Value Series Fund LP, in April 2010. Prior to that, Ms. Krueger was a vice
president in the D. E. Shaw Group’s credit-related opportunities unit. She joined the D. E.
Shaw Group in 2003 and became a vice president in 2006. During her tenure at the D. E.
Shaw Group, Ms. Krueger invested in distressed and deep value securities, in both the
public and private markets. She served on the Board of Directors and as the Chief
Restructuring Officer of FAO Schwarz Inc. and on the Board of Directors of The Boyds
Collection, LTD (private equity holdings of the D. E. Shaw Group). From October 2006
until March 2010, Ms. Krueger served on the Board of Directors of Kid Brands, Inc.
(formerly known as Russ Berrie and Company, Inc.), a public company, where she was amember of the executive and compensation committees. While at the D. E. Shaw Group,
she also served on the Board of Directors of The Parent Co., a public company. Prior to
her work at the D. E. Shaw Group, Ms. Krueger was in the restructuring group at Lazard
Frères & Co. LLC, an investment bank, from 2002 to 2003. Currently, Ms. Krueger
serves on the Board of Directors of Eagle Hospitality Properties Trust, Inc. Ms. Krueger
received her MBA from Columbia Business School, where she was a member of the Beta
Gamma Sigma honor society, and holds an A.B. in Economics from Princeton University.
Ms. Krueger is an Adjunct Professor in the Heilbrunn Center for Graham and Dodd
Investing at Columbia Business School.

(g) Other Officers - Under the form of Certificate of Incorporation for Reorganized Syms,
the officers of Reorganized Syms shall be chosen by the directors serving as of the
Effective Date and shall include a president, a treasurer and a secretary. Subject to
decision by the directors serving as of the Effective Date, one or more persons from
Alvarez & Marsal may continue to serve as officers on an interim or transitional basis.

(h) Series A Trustee - The trustee of the Series A Preferred Share Trust shall be selected and
identified by the Official Committee of Unsecured Creditors prior to the Confirmation
Hearing.

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