Company: BRID
Filing Date: 2025-02-27
Form Type: DEF 14A
Source: 0001493152-25-008406
Chunk: 48

Company: BRIDGFORD FOODS CORP
Filing Date: 2025-02-27
Form: DEF 14A
Chunk 48
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 These corporate governance rules ensure an independent review of financial data and internal controls, while also promoting greater transparency. Taking the Company private and delisting from Nasdaq would substantially diminish, and in some cases eliminate, the benefits currently available to our shareholders. It would also reduce the liquidity of our stock. Furthermore, such actions could limit the Company’s overall liquidity, potentially harm brand recognition, restrict its financing opportunities, and reduce its existing financial resources and/or increase debt to fund the transaction.

As of November 1, 2024, the Board does not view the significant expense required to take the Company private as the best use of its cash, debt, or encumbrances of real estate or other assets. Additionally, the Board recognizes the significant amount of time and dedication of resources that would be required to facilitate such a transaction. The Board is most focused on restoring profitability to the Company by driving top-line revenue growth and reducing costs. In line with this focus, the Company is in discussions with several companies regarding private-label product arrangements with the goal of increasing product sales volume. Market data indicates that, due to higher inflation and rising costs for basic needs, consumers are increasingly turning to private-label products to reduce their expenses. The Company is also seeking bids on its production materials to drive increased competition to its vendors while maintaining quality inputs at the best possible price.

Mr. Krieger’s proposal could adversely impact the Company’s long-term competitiveness, financial stability and return on shareholder investment. The Board has determined that, at present, it is in the best interests of the Company and the shareholders to continue to use the Company’s cash flow to reinvest in growth. The Board continues, however, to actively review how the Company deploys its available cash, including the possibility of paying cash dividends in the future, returning capital to the shareholders through repurchases of shares of our common stock or financing a going private transaction.

For the above reasons, the Board believes that taking the Company private is not in the best interests of the Company or its shareholders, and our shareholders’ interests are best served at this time by focusing management on returning the Company to profitability and long-term success.

THE BOARD OF DIRECTORS UNANIMOUSLY RECOMMENDS A VOTE “AGAINST” MR. KRIEGER’S PROPOSAL.

PROXIES RECEIVED IN RESPONSE TO THIS SOLICITATION WILL BE VOTED “AGAINST” THE PROPOSAL UNLESS OTHERWISE SPECIFIED IN THE PROXY.