Fiesta Restaurant Group, parent company of the Pollo Tropical and Taco Cabana fast-casual restaurant brands, announced that Andrew Rechtschaffen will be added to the Board of Directors as a new independent director. The Board will expand to nine directors and Rechtschaffen will be appointed as a director during an upcoming Board meeting later this month.
Rechtschaffen founded AREX Capital Management, LP, a value-oriented investment firm, in October 2017. Prior to founding AREX, he was a partner at Greenlight Capital, founder and portfolio manager of Obrem Capital, and a managing director in the Principal Strategies Group at Citadel Investment Group.
“Fiesta has a long history of constructive engagement with all of our shareholders, including AREX,” says Stacey Rauch, Chair of the Board of Fiesta. “The Board looks forward to working collaboratively with Andrew as the Company continues to review all strategic options to unlock the value of its brands.”
“We are pleased to welcome Andrew to the Board,” adds Richard Stockinger, Chief Executive Officer and President of Fiesta. “He brings financial expertise that Fiesta looks forward to leveraging as we drive value for the Company and our shareholders.”
“We appreciate the proactive and productive approach by Fiesta’s Board and management in its engagement with shareholders,” says Rechtschaffen. “I look forward to working with the rest of the Board to help Fiesta maximize shareholder value.”
Fiesta also announced it has entered into a cooperation agreement with AREX and certain of its affiliates. The cooperation agreement provides for, among other things, Rechtschaffen’s appointment to the Board as well as AREX’s commitment to abide by certain customary standstill and voting provisions.
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