Thomas Plummer, a fitness industry veteran and the owner of the National Fitness Business Alliance (NFBA), has been nominated to the board of directors of Town Sports International (TSI), New York.
The announcement was made last week by PW Partners Atlas Funds and HG Vora Capital Management who collectively own 26.2 percent of shares of TSI stock. Plummer, one of six nominees to the TSI board, declined to comment to Club Industry about the nomination.
The announcement comes days after TSI's board of directors had adopted a stockholder rights plan. The action was prompted by a Dec. 22 letter from Patrick Walsh, CEO of PW Partners Atlas Funds and one of the six nominees to the TSI board, to TSI Chairman of the Board Thomas Galligan. In the letter, Walsh wrote that the two shareholders were prepared to nominate six members for election to the board and was willing to settle on four board seats.
PW Partners and HG Vora Capital proceeded with its nomination of six members and rebuffed the shareholder rights plan.
"As stockholders collectively owning more than 26 percent of Town Sports, we believe the company needs to significantly revamp its board of directors to effect the changes necessary to maximize stockholder value," PW Partners and HG Vora Capital said in a joint statement. "We believe our proposed slate of experienced operating and business professionals with significant expertise in the fitness industry and corporate finance will strengthen Town Sports' brands, right-size its cost structure, and make prudent capital allocation decisions for the benefit of all stockholders."
The two shareholders added that TSI "has failed to engage in a meaningful dialogue with us regarding our recommendations for enhancing stockholder value. The company also rebuffed our good faith attempts to obtain meaningful representation on the board and responded by adopting a 'poison pill' rights plan. Stockholders deserve directors who will proactively address the many issues facing Town Sports and be committed to meaningful value creation."
Plummer founded the NFBA in 2003. The NFBA offers seminars, workshops and other consulting services to the fitness industry and is a provider of education for fitness business owners. Plummer owned the Thomas Plummer Co. from 1990 to 2003.
In addition to Plummer and Walsh, the other four nominees to the TSI board are Glenn Colarossi, principal of Colarossi Spa & Health Club Consulting & Management LLC; Mark A. McEachen, CEO of The Dolan Company; Jeffrey C. Neal, partner of the investment company Horizon Capital LLC; and L. Spencer Wells, partner of Drivetrain Advisors LLC. All six will be up for election at TSI's upcoming annual meeting of stockholders.
On Monday, TSI presented at the ICR Xchange Conference in Orlando and said it will have 120 of is 158 clubs converted to its low-price model by the end of March.