Citi trends extension of cooperation pact with fund 1

Citi trends extension of cooperation pact with fund 1

Citi Trends Extends Cooperation Agreement with Fund 1 Amid Governance Updates

Citi Trends, Inc. (NASDAQ: CTRN) announced on February 19, 2026, that it has extended its cooperation agreement with Fund 1 Investments, LLC (“Fund 1”) for an additional one-year term, aligning with broader governance updates. The move follows a series of board transitions and leadership changes, including the departure of Wes Calvert as Chair of the Finance Committee and the appointment of Benjamin Faw, an independent director, to assume the role according to the announcement.

The extended cooperation agreement includes standstill provisions, reflecting continued alignment between Citi Trends and Fund 1, a shareholder with a history of engagement with the company. Ken Seipel, Chairman and CEO of Citi Trends, stated the extension signifies “confidence in our strategy, governance, and execution”. Jonathan Lennon, Founder and Managing Partner of Fund 1, echoed this sentiment, emphasizing confidence in the company’s leadership and long-term value creation for shareholders as reported.

The board transition saw Calvert, who provided financial oversight and capital allocation guidance during his tenure, depart effective February 19, 2026. Faw, a private investor with expertise in technology and consumer-facing businesses, was appointed to replace him. His background in digital innovation and capital discipline is expected to support Citi Trends’ modernization efforts.

Post-updates, the Citi Trends board comprises eight directors, seven of whom are independent, maintaining governance standards. The company operates 590 stores across 33 states, targeting Black families with off-price apparel, accessories, and home trends.

The cooperation agreement extension underscores collaborative governance dynamics as Citi Trends navigates strategic priorities. With Fund 1’s continued support and fresh leadership on the Finance Committee, the company aims to strengthen financial discipline and operational execution. Investors are advised to monitor how these changes impact capital allocation decisions and long-term shareholder value, particularly amid evolving retail sector challenges.

Source: Citi Trends, Inc. press release, February 19, 2026.