MOORESTOWN, N.J.--(BUSINESS WIRE)--Destination Maternity Corporation (NASDAQ: DEST) (the “Company”) announced today that it entered into an agreement with its second largest shareholder, Nathan G. Miller. The agreement allows the Company to share information with Mr. Miller, from time to time and subject to customary confidentiality and trading restrictions, with the goal of benefiting all shareholders.
Marla Ryan, Chief Executive Officer of Destination Maternity, stated, “At this year’s Annual Meeting, Destination Maternity’s shareholders decisively voted for a significant change in strategic direction at the Company. We believe this agreement will help ensure that Destination Maternity has the opportunity to benefit from the perspective of one of its largest shareholders as we continue executing on this change. Moving forward, our collective focus fully remains on seeking to maximize long-term value for all investors and stakeholders in the Company.”
The agreement also provides for the mutual release of potential legal claims between the Company and Mr. Miller related to the recent proxy contest, which resulted in the election of four nominees to the Board of Directors (the “Board”) at the Company’s Annual Meeting of Shareholders held on May 23, 2018. Destination Maternity also agreed to reimburse $1.2 million of Mr. Miller’s fees and expenses incurred in connection with the proxy contest, which will be taken as a charge in the second quarter of fiscal 2018.
Nathan G. Miller, Destination Maternity’s second largest shareholder, said, “I have always believed in the long-term value of Destination Maternity and its brands. With the new Board and CEO, I believe Destination Maternity is fully focused on improving performance and creating shareholder value, and I am excited about the prospects for the Company moving forward.”
About Destination Maternity
Destination Maternity Corporation is the world's largest designer and retailer of maternity apparel. As of May 5, 2018, Destination Maternity operates 1,118 retail locations in the United States, Canada and Puerto Rico, including 484 stores, predominantly under the trade names Motherhood Maternity®, A Pea in the Pod® and Destination Maternity®, and 634 leased department locations. The Company also sells merchandise on the web primarily through its brand-specific websites, motherhood.com and apeainthepod.com, as well as through its destinationmaternity.com website. Destination Maternity has international store franchise and product supply relationships in the Middle East, South Korea, Mexico, Israel and India. As of May 5, 2018, Destination Maternity has 186 international franchised locations, including 13 standalone stores operated under one of the Company's nameplates and 173 shop-in-shop locations.
