Akre Capital opposed to 99 Cents Only's plan to stay in Texas

By Lisa Kerner

Charlotte, N.C., Aug. 21 - 99 Cents Only Stores, Inc. shareholder Akre Capital Management, LLC asked the company to provide a "thorough and analytical explanation" of its decision to maintain a presence in Texas.

Akre, with an 11.26% ownership interest, believes management should focus on reviving its core California, Nevada and Arizona profitability.

"Why does the company believe that expending finite management resources on a small opportunity in Texas makes sense when the remaining 90%-plus of the business remains distressed and offers much greater potential?" Akre asked in an Aug. 20 letter to 99 Cents Only's board of directors.

The shareholder also noted the challenge of retail turnarounds and said the company's business has deteriorated since the current management team began its efforts more than three years ago.

99 Cents is a City of Commerce, Calif.-based discount retailer.

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