Jolly Roger nominates two for election to Angelica's board of directors

By Lisa Kerner

Charlotte, N.C., Aug. 31 - Angelica Corp. shareholders led by Jolly Roger Fund LP nominated Thomas R. Hudson, Jr., founder and manager of Pirate Capital, LLC, a Jolly Roger affiliate, and Pirate Capital's general counsel and chief compliance officer Christopher Kelly for election to the company's board of directors.

The Aug. 30 nominations were included in a schedule 13D filing with the Securities and Exchange Commission.

It was previously reported that Pirate Capital questioned Angelica's board about the re-engagement of Morgan Joseph & Co. as Angelica's strategic adviser. In a letter to Angelica, Hudson said Angelica's previous response to the shareholder was "every bit as opaque as the company's purported strategy for moving forward."

According to Pirate, Morgan Joseph has been leading Angelica's "recent failing corporate initiatives."

Pirate had reiterated its demand in a July 12 letter that the board "promptly retain the services of a nationally recognized investment banking firm for the purpose of effecting a sale of the company, through sales of assets, an extraordinary transaction or otherwise, and to publicly identify the investment banking firm and its mandate."

At that time, the investor said if its demands were not met, it would nominate one or more people to Angelica's board.

Angelica is a Chesterfield, Mo.-based provider of textile rental and linen management services principally to the health care industry.

Pirate currently owns 935,147 shares, or 9.8%, of Angelica's outstanding stock.

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