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  "docSlug": "jarvis-macellum-big-lots-letter-march-2020",
  "documentTitle": "Macellum Big Lots Letter March 2020",
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  "presentationDate": "2020-03-01 00:00:00",
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  "notes": "This is a letter-style slide from an activist investor group (Macellum/Ancora) proposing board changes and operational improvements.",
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      "kind": "list",
      "text": "Grow Operating Income. Through a combination of cost reduction, gross margin expansion and expense leverage the Investor Group believes margins can recapture at least the 220bps that have been lost in the last three years.",
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      "text": "Cash Flow Generation. Through disciplined capital allocation, increasing inventory turns and working capital management, we believe we can return the Company to a point where cash flow generation will eclipse operating income.",
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      "text": "Monetize $1 Billion of Real Estate Assets. The Investor Group is aware of at least one nationally recognized real estate private equity firm willing to undertake a sale leaseback transaction valued at over $1 billion.",
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      "text": "Jonathan Duskin, Macellum Advisors GP, LLC, Managing Member; Fred DiSanto, Chief Executive Officer and Executive Chairman, Ancora Advisors LLC",
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      "kind": "paragraph",
      "text": "While we acknowledge that capital allocation alone will not be sufficient to create meaningful, sustainable, long-term shareholder value, we recognize that shareholders need directors that understand the retail landscape and can bring urgent focus to developing a comprehensive strategy to increase profitability.",
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      "kind": "paragraph",
      "text": "We look forward to engaging with the Board to ensure the Board is composed of the most highly qualified directors and communicating to our fellow shareholders more detailed plans to move Big Lots in the right direction.",
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      "text": "The Investor Group believes there is tremendous potential in Big Lots business, however, we also believe decisive action must be taken now to refresh the Board with directors who have relevant experience, a sense of urgency and the appropriate skill sets to address the Company's issues. By doing this we believe we can unlock significant value through effective capital allocation, monetizing the Company's real estate and developing a comprehensive strategy to increase margins and top line growth. The Investor Group believes that with a sizable share repurchase of the Company's outstanding shares, Big Lots could earn over $6 per share and have a debt free balance sheet. Further improvement in operating performance will result in earnings per share that are materially higher than the $6.",
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