Cost-U-Less board says it has considered strategic alternatives

By Lisa Kerner

Charlotte, N.C., Jan. 30 - Cost-U-Less, Inc. said over the past six years its board of directors engaged three outside financial advisers on four separate occasions to evaluate strategic alternatives, according to disclosures filed with the Securities and Exchange Commission.

Some Cost-U-Less shareholders had publicly suggested the board take such action.

Strategic alternatives considered included potential business combinations; acquisition or divestiture opportunities, strategic partnering, potential equity financings and expansion of the stock repurchase programs.

"Even though we have stated publicly on numerous occasions that our board is continually exploring and evaluating ways to increase shareholder value, these recent public suggestions may have created the opposite impression," chief executive officer J. Jeffrey Meder said in the SEC filings.

"We feel that our shareholders will benefit from a more accurate view of how much attention our board is paying to this important subject."

"While the board continues to evaluate strategic alternatives, however, management will focus on ways to build value for our shareholders, including efforts to increase earnings, respond to competition and identify opportunities for future growth," Meder added.

Cost-U-Less, based in Bellevue, Wash., operates 11 stores throughout the Caribbean and Pacific regions and the United States.

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