Wynnefield waives reimbursement of costs in Crown Crafts proxy battle

By Lisa Kerner

Charlotte, N.C., Aug. 8 - Crown Crafts Inc.'s largest shareholder the Wynnefield Group said it will decline any customary reimbursement for the costs of its proxy campaign to elect two independent directors to the company's board.

"Stockholders have too much at stake to be distracted from the real issues facing Crown Crafts," Wynnefield managing partner Nelson Obus said in a news release.

Obus, one of Wynnefield's two director-nominees, said if elected he would limit his own board compensation to one dollar per year, plus travel expenses.

"We have dropped the customary reimbursement request, even as the current directors and management continue to have stockholders pay ALL of the solicitation costs for Messrs. Fox and Deyo, so that everyone can fully focus on the real issues of how this company can best build value for its stockholders and how our nominees can help make that happen," Obus added.

Independent proxy voting advisory firms Institutional Shareholder Services, Proxy Governance and Egan-Jones have all recommended that stockholders vote Wynnefield's gold card, the investor noted.

Crown Crafts' annual meeting is set for Aug. 14.

Wynnefield had offered a compromise agreement in the proxy battle. Under the agreement, Wynnefield would drop its opposition to the re-election of William T. Deyo, Jr. and Steven E. Fox as directors of the company.

Crown Crafts would then be asked to agree to a number of terms including increasing the size of its board to nine members and the election of Obus and Frederick G. Wasserman.

As previously reported, Wynnefield has been critical of Crown Crafts for not addressing its declining sales, flat operating income and deteriorating shareholder value.

Crown Crafts is a Gonzales, La., distributor of infant and juvenile products.

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