Kanen Wealth Management urges CarParts.com to form strategic review committee

David Kanen, president of Kanen Wealth Management, wrote in part, "I am writing on behalf of Kanen Wealth Management, LLC which, together with its affiliates, is one of CarParts.com’s largest stockholders, owning approximately 3 million shares of the Company’s common stock. As you know, we have attempted, on multiple occasions, to privately address our concerns with management’s failure to meaningfully generate stockholder value at PRTS. These engagements have been to no avail. Unfortunately, we are now forced to publicly communicate our frustrations in a way that may be unflattering to Mr. Meniane and the Company’s Board of Directors/ As you may be aware, in early 2019, when Mr. Mehran Nia and I had recently joined the Board, the Company’s market cap was approximately $40 million. By April of 2021, just two years later, PRTS’s stock was approximately $17 per share and the Company’s market cap had risen to over $815 million. At that time, Mr. Nia and I had both resigned from the Board to pursue other ventures, thinking that the Company was well-positioned for continued growth. Sadly, we were mistaken, as since then, the Company’s market cap has declined by half a billion dollars and PRTS’s stock price now sits at less than $6 per share…Therefore, we strongly recommend that the Company immediately take the following actions to restore stockholder value at PRTS: 1) Repurchase shares under the previously announced $30 million share repurchase program announced in 2022; 2) Conduct a detailed and thoughtful expense rationalization program; 3) Halt any further equity dilution until stockholder value is restored to peak levels; 4) Form a strategic review committee to explore alternatives that maximize stockholder value including a sale of the Company; 5) Re-instate me as a shareholder representative in the boardroom; and 6) Consult with Mr. Nia to determine his desire and willingness to be re-instated as a director to the Board, and appoint him to the Board if he’s so willing to serve. We hope that this serves as a wake-up call to management and the Board and begins a productive and collaborative dialogue. Otherwise, we intend to take all steps necessary to restore stockholder value at PRTS."