0001193805-19-000354.txt : 20190410 0001193805-19-000354.hdr.sgml : 20190410 20190410170029 ACCESSION NUMBER: 0001193805-19-000354 CONFORMED SUBMISSION TYPE: SC 13D/A PUBLIC DOCUMENT COUNT: 5 FILED AS OF DATE: 20190410 DATE AS OF CHANGE: 20190410 SUBJECT COMPANY: COMPANY DATA: COMPANY CONFORMED NAME: J. Alexander's Holdings, Inc. CENTRAL INDEX KEY: 0001617227 STANDARD INDUSTRIAL CLASSIFICATION: RETAIL-EATING PLACES [5812] IRS NUMBER: 471608715 STATE OF INCORPORATION: TN FISCAL YEAR END: 1230 FILING VALUES: FORM TYPE: SC 13D/A SEC ACT: 1934 Act SEC FILE NUMBER: 005-89109 FILM NUMBER: 19742146 BUSINESS ADDRESS: STREET 1: 3401 WEST END AVENUE, SUITE 260 CITY: NASHVILLE STATE: TN ZIP: 37203 BUSINESS PHONE: 615-269-1900 MAIL ADDRESS: STREET 1: 3401 WEST END AVENUE, SUITE 260 CITY: NASHVILLE STATE: TN ZIP: 37203 FILED BY: COMPANY DATA: COMPANY CONFORMED NAME: Marathon Partners Equity Management, LLC CENTRAL INDEX KEY: 0001353311 IRS NUMBER: 000000000 FILING VALUES: FORM TYPE: SC 13D/A BUSINESS ADDRESS: STREET 1: ONE GRAND CENTRAL PLACE STREET 2: 60 EAST 42ND STREET, SUITE 2306 CITY: NEW YORK STATE: NY ZIP: 10165 BUSINESS PHONE: 212-490-0399 MAIL ADDRESS: STREET 1: ONE GRAND CENTRAL PLACE STREET 2: 60 EAST 42ND STREET, SUITE 2306 CITY: NEW YORK STATE: NY ZIP: 10165 FORMER COMPANY: FORMER CONFORMED NAME: MARATHON PARTNERS EQUITY MANAGEMENT, LLC DATE OF NAME CHANGE: 20140513 FORMER COMPANY: FORMER CONFORMED NAME: CIBELLI CAPITAL MANAGEMENT LLC DATE OF NAME CHANGE: 20060405 FORMER COMPANY: FORMER CONFORMED NAME: Cibelli Capital Management LLC DATE OF NAME CHANGE: 20060214 SC 13D/A 1 sc13da508009005_04102019.htm AMENDMENT NO. 5 TO THE SCHEDULE 13D

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

SCHEDULE 13D

(Rule 13d-101)

INFORMATION TO BE INCLUDED IN STATEMENTS FILED PURSUANT

TO § 240.13d-1(a) AND AMENDMENTS THERETO FILED PURSUANT TO

§ 240.13d-2(a)

(Amendment No. 5)1

J. Alexander’s Holdings, Inc.

(Name of Issuer)

Common Stock, $0.001 par value

(Title of Class of Securities)

46609J106

(CUSIP Number)

MARIO D. CIBELLI

C/O MARATHON PARTNERS EQUITY MANAGEMENT, LLC

One Grand Central Place

60 East 42nd Street, Suite 2306

New York, New York 10165

(212) 490-0399

(Name, Address and Telephone Number of Person

Authorized to Receive Notices and Communications)

 

April 10, 2019

(Date of Event Which Requires Filing of This Statement)

 

If the filing person has previously filed a statement on Schedule 13G to report the acquisition that is the subject of this Schedule 13D, and is filing this schedule because of §§ 240.13d-1(e), 240.13d-1(f) or 240.13d-1(g), check the following box ¨.

Note:  Schedules filed in paper format shall include a signed original and five copies of the schedule, including all exhibits.  See § 240.13d-7 for other parties to whom copies are to be sent.

 

 

 

1              The remainder of this cover page shall be filled out for a reporting person’s initial filing on this form with respect to the subject class of securities, and for any subsequent amendment containing information which would alter disclosures provided in a prior cover page.

The information required on the remainder of this cover page shall not be deemed to be “filed” for the purpose of Section 18 of the Securities Exchange Act of 1934 (“Act”) or otherwise subject to the liabilities of that section of the Act but shall be subject to all other provisions of the Act (however, see the Notes).

 

CUSIP NO. 46609J106

  1   NAME OF REPORTING PERSON  
         
        Marathon Partners Equity Management, LLC  
  2   CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) ☐
        (b) ☐
           
  3   SEC USE ONLY    
           
           
  4   SOURCE OF FUNDS  
         
        AF  
  5   CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) OR 2(e)     ☐
       
           
  6   CITIZENSHIP OR PLACE OF ORGANIZATION  
         
        DELAWARE  
NUMBER OF   7   SOLE VOTING POWER  
SHARES          
BENEFICIALLY         - 0 -  
OWNED BY   8   SHARED VOTING POWER  
EACH          
REPORTING         975,000  
PERSON WITH   9   SOLE DISPOSITIVE POWER  
         
          - 0 -  
    10   SHARED DISPOSITIVE POWER  
           
          975,000  
  11   AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON  
         
        975,000  
  12   CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES     ☐
       
           
  13   PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)  
         
        6.6%  
  14   TYPE OF REPORTING PERSON  
         
        IA  

  

2

CUSIP NO. 46609J106

  1   NAME OF REPORTING PERSON  
         
        Mario D. Cibelli  
  2   CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) ☐
        (b) ☐
           
  3   SEC USE ONLY    
           
           
  4   SOURCE OF FUNDS  
         
        AF  
  5   CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) OR 2(e)     ☐
       
           
  6   CITIZENSHIP OR PLACE OF ORGANIZATION  
         
        USA  
NUMBER OF   7   SOLE VOTING POWER  
SHARES          
BENEFICIALLY         - 0 -  
OWNED BY   8   SHARED VOTING POWER  
EACH          
REPORTING         975,000  
PERSON WITH   9   SOLE DISPOSITIVE POWER  
         
          - 0 -  
    10   SHARED DISPOSITIVE POWER  
           
          975,000  
  11   AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON  
         
        975,000  
  12   CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES     ☐
       
           
  13   PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)  
         
        6.6%  
  14   TYPE OF REPORTING PERSON  
         
        IN  

  

3

CUSIP NO. 46609J106

 

  1   NAME OF REPORTING PERSON  
         
        Marathon Focus Fund L.P.  
  2   CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) ☐
        (b) ☐
           
  3   SEC USE ONLY    
           
           
  4   SOURCE OF FUNDS  
         
        WC  
  5   CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) OR 2(e)     ☐
       
           
  6   CITIZENSHIP OR PLACE OF ORGANIZATION  
         
        DELAWARE  
NUMBER OF   7   SOLE VOTING POWER  
SHARES          
BENEFICIALLY         - 0 -  
OWNED BY   8   SHARED VOTING POWER  
EACH          
REPORTING         175,000  
PERSON WITH   9   SOLE DISPOSITIVE POWER  
         
          - 0 -  
    10   SHARED DISPOSITIVE POWER  
           
          175,000  
  11   AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON  
         
        175,000  
  12   CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES     ☐
       
           
  13   PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)  
         
        1.2%  
  14   TYPE OF REPORTING PERSON  
         
        PN  

  

4

CUSIP NO. 46609J106

 

  1   NAME OF REPORTING PERSON  
         
        Cibelli Research & Management, LLC  
  2   CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) ☐
        (b) ☐
           
  3   SEC USE ONLY    
           
           
  4   SOURCE OF FUNDS  
         
        AF  
  5   CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) OR 2(e)     ☐
       
           
  6   CITIZENSHIP OR PLACE OF ORGANIZATION  
         
        DELAWARE  
NUMBER OF   7   SOLE VOTING POWER  
SHARES          
BENEFICIALLY         -0-  
OWNED BY   8   SHARED VOTING POWER  
EACH          
REPORTING         175,000  
PERSON WITH   9   SOLE DISPOSITIVE POWER  
         
          -0-  
    10   SHARED DISPOSITIVE POWER  
           
          175,000  
  11   AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON  
         
        175,000  
  12   CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES     ☐
       
           
  13   PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)  
         
        1.2%  
  14   TYPE OF REPORTING PERSON  
         
        OO  

  

5

CUSIP NO. 46609J106

 

  1   NAME OF REPORTING PERSON  
         
        Marathon Partners L.P.  
  2   CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) ☐
        (b) ☐
           
  3   SEC USE ONLY    
           
           
  4   SOURCE OF FUNDS  
         
        WC  
  5   CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) OR 2(e)     ☐
       
           
  6   CITIZENSHIP OR PLACE OF ORGANIZATION  
         
        NEW YORK  
NUMBER OF   7   SOLE VOTING POWER  
SHARES          
BENEFICIALLY         - 0 -  
OWNED BY   8   SHARED VOTING POWER  
EACH          
REPORTING         800,000  
PERSON WITH   9   SOLE DISPOSITIVE POWER  
         
          - 0 -  
    10   SHARED DISPOSITIVE POWER  
           
          800,000  
  11   AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON  
         
        800,000  
  12   CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES     ☐
       
           
  13   PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)  
         
        5.4%  
  14   TYPE OF REPORTING PERSON  
         
        PN  

  

6

CUSIP NO. 46609J106

The following constitutes Amendment No. 5 to the Schedule 13D filed by the undersigned (“Amendment No. 5”). This Amendment No. 5 amends the Schedule 13D as specifically set forth herein.

 

Item 3.Source and Amount of Funds or Other Consideration.

Item 3 is hereby amended and restated to read as follows:

The Shares purchased by each of Partners LP and Focus Fund were purchased with working capital (which may, at any given time, include margin loans made by brokerage firms in the ordinary course of business) in open market purchases. The aggregate purchase price of the 800,000 Shares beneficially owned by Partners LP is approximately $7,985,514, excluding brokerage commissions. The aggregate purchase price of the 175,000 Shares beneficially owned by Focus Fund is approximately $1,643,625, excluding brokerage commissions.

Item 4.Purpose of Transaction.

Item 4 is hereby amended to add the following:

On April 10, 2019, Marathon Partners delivered a letter (the “Letter”) to the Issuer’s board of directors (the “Board”) following Ancora Advisors LLC’s (“Ancora”) recent letter to the Board offering to acquire the Issuer for $11.75 per share. In the Letter, Marathon Partners stated its agreement with many points raised in Ancora’s letter, including the inefficiency of the Issuer continuing to operate as a publicly traded company.

Marathon Partners recommended that the Board initiate a fair and open auction process and sell the Issuer to the highest bidder, stating its belief that the Issuer’s status as an orphaned company in the public markets, persistent undervaluation as a public company and shareholder returns that have severely underperformed all relevant benchmarks since its initial September 2015 spin-off support the need for an auction process at this time.

Marathon stated its belief that the Issuer’s underperformance has been exacerbated by (i) the lack of a compelling plan by management and the Board to grow shareholder value, (ii) the entire Board being composed of individuals that are or were associated with entities controlled by William P. Foley II and (iii) the Issuer’s inaction in seeking new Board representatives to offer fresh perspectives to the management team.

Marathon Partners further stated its belief that the Issuer’s rejection of Ancora’s offer without a full auction process would run counter to the fiduciary obligations that the Board owes its shareholders.

The full text of the letter is attached hereto as Exhibit 99.1 and is incorporated herein by reference.

Item 5.Interest in Securities of the Issuer.

Items 5(a)-(c) are hereby amended and restated to read as follows:

The aggregate percentage of Shares reported owned by each Reporting Person is based upon 14,695,176 Shares outstanding, which is the total number of Shares outstanding as of the close of business on March 13, 2019, as reported in the Issuer’s Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 14, 2019.

7

CUSIP NO. 46609J106

A.Marathon Partners
(a)Marathon Partners, as the investment manager of each of Partners LP and Focus Fund, and the general partner of Partners LP, may be deemed the beneficial owner of the (i) 800,000 Shares owned by Partners LP and (ii) 175,000 Shares owned by Focus Fund.

Percentage: Approximately 6.6%

(b)1. Sole power to vote or direct vote: 0
2. Shared power to vote or direct vote: 975,000
3. Sole power to dispose or direct the disposition: 0
4. Shared power to dispose or direct the disposition: 975,000

 

(c)Marathon Partners has not entered into any transactions in the Shares during the past sixty days. The transactions in the Shares on behalf of each of Partners LP and Focus Fund during the past sixty days are set forth in Schedule A and are incorporated herein by reference.
B.Mr. Cibelli
(a)Mr. Cibelli, as the managing member of each of Cibelli Research and Marathon Partners, may be deemed the beneficial owner of the (i) 800,000 Shares owned by Partners LP and (ii) 175,000 Shares owned by Focus Fund.

Percentage: Approximately 6.6%

(b)1. Sole power to vote or direct vote: 0
2. Shared power to vote or direct vote: 975,000
3. Sole power to dispose or direct the disposition: 0
4. Shared power to dispose or direct the disposition: 975,000

(c)Mr. Cibelli has not entered into any transactions in the Shares during the past sixty days. The transactions in the Shares on behalf of each of Partners LP and Focus Fund during the past sixty days are set forth in Schedule A and are incorporated herein by reference.
C.Focus Fund
(a)As of the close of business on April 10, 2019, Focus Fund beneficially owned 175,000 Shares.

Percentage: Approximately 1.2%

(b)1. Sole power to vote or direct vote: 0
2. Shared power to vote or direct vote: 175,000
3. Sole power to dispose or direct the disposition: 0
4. Shared power to dispose or direct the disposition: 175,000

(c)The transactions in the Shares by Focus Fund during the past sixty days are set forth in Schedule A and are incorporated herein by reference.
8

CUSIP NO. 46609J106

D.Cibelli Research
(a)Cibelli Research, as the general partner of Focus Fund, may be deemed the beneficial owner of the 175,000 Shares owned by Focus Fund.

Percentage: Approximately 1.2%

(b)1. Sole power to vote or direct vote: 0
2. Shared power to vote or direct vote: 175,000
3. Sole power to dispose or direct the disposition: 0
4. Shared power to dispose or direct the disposition: 175,000

 

(c)Cibelli Research has not entered into any transactions in the Shares during the past sixty days. The transactions in the Shares on behalf of Focus Fund during the past sixty days are set forth in Schedule A and are incorporated herein by reference.
E.Partners LP
(a)As of the close of business on April 10, 2019, Partners LP beneficially owned 800,000 Shares.

Percentage: Approximately 5.4%

(b)1. Sole power to vote or direct vote: 0
2. Shared power to vote or direct vote: 800,000
3. Sole power to dispose or direct the disposition: 0
4. Shared power to dispose or direct the disposition: 800,000

(c)The transactions in the Shares by Partners LP during the past sixty days are set forth in Schedule A and are incorporated herein by reference.

Each Reporting Person, as a member of a “group” with the other Reporting Persons for the purposes of Section 13(d)(3) of the Securities Exchange Act of 1934, as amended, may be deemed the beneficial owner of the Shares directly owned by the other Reporting Persons. Each Reporting Person disclaims beneficial ownership of such Shares except to the extent of his or its pecuniary interest therein.

Item 7.Material to be Filed as Exhibits.

Item 7 is hereby amended to add the following exhibit:

99.1Letter to the Board, dated April 10, 2019.

 

9

CUSIP NO. 46609J106

SIGNATURES

After reasonable inquiry and to the best of his knowledge and belief, the undersigned certifies that the information set forth in this statement is true, complete and correct.

Dated: April 10, 2019

 

  Marathon Partners L.P.
   
  By:

Marathon Partners Equity

Management, LLC, its General Partner

   
  By: /s/ Mario D. Cibelli
    Name: Mario D. Cibelli
    Title: Managing Member

 

  Marathon Focus Fund L.P.
   
  By:

Cibelli Research & Management, LLC,

its General Partner

   
  By: /s/ Mario D. Cibelli
    Name: Mario D. Cibelli
    Title: Managing Member

 

  Cibelli Research & Management, LLC
   
  By: /s/ Mario D. Cibelli
    Name: Mario D. Cibelli
    Title: Managing Member

 

  Marathon Partners Equity Management, LLC
   
  By: /s/ Mario D. Cibelli
    Name: Mario D. Cibelli
    Title: Managing Member

 

 

/s/ Mario D. Cibelli

  MARIO D. CIBELLI

 

10

CUSIP NO. 46609J106

SCHEDULE A

Transactions in the Shares of the Issuer During the Past Sixty Days

Nature of the Transaction

Securities

Purchased/(Sold)

Price Per

Share($)

Date of

Purchase / Sale

 

Marathon Focus Fund L.P.

 

Purchase of Common Stock 3,064 9.4830 02/14/2019
Purchase of Common Stock 15,355 9.4992 02/15/2019
Purchase of Common Stock 1,581 9.4994 02/19/2019
Purchase of Common Stock 12,000 9.1923 02/28/2019
Purchase of Common Stock 2,000 9.1368 03/01/2019
Purchase of Common Stock 2,879 9.2890 03/04/2019
Purchase of Common Stock 3,525 9.2930 03/05/2019
Purchase of Common Stock 4,596 9.2920 03/06/2019

 

Marathon Partners L.P.

 

Purchase of Common Stock 4,758 9.1263 02/11/2019
Purchase of Common Stock 7,542 9.1543 02/12/2019
Purchase of Common Stock 8,000 9.4001 02/13/2019
Purchase of Common Stock 2,000 9.4830 02/14/2019
Purchase of Common Stock 5,747 9.5969 02/20/2019
Purchase of Common Stock 4,253 9.7214 02/21/2019
Purchase of Common Stock 7,200 9.5791 02/22/2019
Purchase of Common Stock 4,100 9.5991 02/25/2019
Purchase of Common Stock 3,700 9.5848 02/26/2019
Purchase of Common Stock 15,000 9.1898 03/07/2019
Purchase of Common Stock 8,100 9.3417 03/08/2019
Purchase of Common Stock 1,900 9.4979 03/11/2019

 

EX-99.1 2 ex991to13da508009005_041019.htm LETTER TO THE BOARD

Exhibit 99.1

 

 

 

April 10, 2019

 

 

Board of Directors

c/o Corporate Secretary

J. Alexander’s Holdings, Inc.

3401 West End Avenue, Suite 260

Nashville, Tennessee 37202

 

 

Dear Board Members:

 

We are writing to you regarding Ancora Advisors LLC’s (“Ancora”) recent letter to the Board offering to acquire J. Alexander’s Holdings, Inc. (“J. Alexander’s” or the “Company”) for $11.75 per share. Our firm, Marathon Partners Equity Management, LLC (“Marathon Partners”), owns 975,000 shares of J. Alexander’s, making us one of the largest shareholders of the Company. We have reviewed Ancora’s letter and agree with many of its points, including the inefficiency of J. Alexander’s continuing to operate as a publicly traded company.

 

As a long-time shareholder who has owned shares since the initial September 2015 spin-off and who more recently spearheaded the successful effort to reject the ill-advised merger with 99 Restaurants, we strongly recommend that the Board commence a full auction process and sell J. Alexander’s to the highest bidder. We believe the rejection of Ancora’s offer without a full auction process would run counter to the fiduciary obligations the Board owes its shareholders.

 

While we applaud the recent termination of the Black Knight Advisory Services agreement as a shareholder friendly action, there are many factors which support an auction process at this time, including: J. Alexander’s status as an orphaned company in the public markets, persistent undervaluation as a public company, and shareholder returns that have severely underperformed all relevant benchmarks since the spin-off.

 

The Company’s underperformance has been exacerbated by the lack of a compelling plan by management and the Board to grow shareholder value. Further, the entire Board is comprised of individuals that are or were associated with entities controlled by William P. Foley II, and the Company has made no effort to seek new Board representatives who might offer fresh perspectives to the management team.

 

Therefore, we believe the most realistic path to maximize shareholder value is for the Board to initiate a fair and open auction process, and sell J. Alexander’s to the highest bidder.

 

 

Page 1

 

 

 

Please let us know if we can be of any further assistance.

 

 

Sincerely,

 

 

 

Mario D. Cibelli

Managing Member

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