Star Equity Presses GEE Group (JOB) for Merger Talks, Citing Prolonged Value Destruction
Market Cap: $29 million | GEE Group Inc. provides permanent and temporary professional and industrial staffing and placement services in the United States.
Star Equity Holdings
On January 22, 2026, Star Equity Holdings (5.4%) publicly disclosed that GEE Group’s management and board have not responded to its proposal to begin merger talks under a nondisclosure agreement. Star Equity argues that GEE Group’s strategy of remaining an independent small public staffing company with high overhead and a poor acquisition track record has led to steep declines in revenue and shareholder value (FY 2025 revenue fell ~42% from its peak and shares have dropped ~92% over five years). It warns of further cash erosion and strategic missteps, criticizing leadership for rejecting share buybacks in favor of pricey acquisitions, and says a merger with Star Equity could cut duplicate costs, sharpen operations, and benefit both companies’ shareholders. Source
Red Oak Fund
On May 25, 2023, Red Oak Fund (8.7%) delivered a letter to the company nominating a slate of two candidates for election to the board at the 2023 AGM. Source
On August 9, 2023, Red Oak Partners entered into a cooperation agreement with the company and pursuant to it, the Board will increase its size from seven to nine directors and appoint two new independent directors, David Sandberg (Red Oak Capital's nominee) and J. Randall Waterfield) to serve as Class I and Class II directors, respectively, filling the newly created vacancies on the Board.
Goldenwise Capital Group
On August 15, 2023, Goldenwise Capital Group (5.2%) stated that since May 2023, it has been engaged, and intends to continue to engage, in discussions with management regarding opportunities to unlock value, including: Changes to Board Composition, De-staggering Board, Share Repurchase, Corporate Governance Improvement, Potential Selling of the Company. Source
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