Esopus demands accounting of Syms real estate, will withhold its proxy at July 10 meeting

By Lisa Kerner

Charlotte, N.C., June 10 - Syms Corp. shareholder Esopus Creek Value LP demanded the company provide public shareholders with a complete accounting of all of its owned real estate assets.

In a letter to Syms' board of directors, Esopus, a 4% shareholder, claimed there is a "large discrepancy" between the data reported in the company's financial filings and the data from local property tax records.

Specifically, Esopus said Syms actually owns approximately 2.05 million square feet of taxable retail space, warehouse and office space and other buildable space, compared with the approximately 1.4 million square feet of total owned space reported in the company's regulatory filings.

Esopus wants Syms' independent accountant, BDO Seidman, to correct and publicly disclose the alleged discrepancies.

Syms is also accused of failing to itemize large amounts of rental income, according to an Esopus news release.

As a result of its findings, Esopus said it will not ratify the re-appointment of BDO Seidman and will withhold its proxy for all directors standing for re-election at the Syms annual meeting on July 10.

In April, Esopus demanded that Syms disclose its development intentions for 42 Trinity Place in lower Manhattan.

Esopus accused the company of failing to inform its minority shareholders of its intention to develop a residential/commercial complex on the site, noting that a zoning lot development agreement with the city of New York had been in place for four months.

The agreement was executed by Syms former chief financial officer and former board member Antoine Moreira, who resigned after Esopus filed a lawsuit against the company's board of directors, a prior news release stated.

In the past, Esopus has asked the company's board to review the performance of each of the company's stores.

The investor had been part of a group that suggested fellow shareholders register some of their Syms shares in their own names in an attempt to stop Syms from deregistering its shares in December.

Syms is a Secaucus, N.J.-based off-price retailer.

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