Activist Investors Nominate Nine Directors to Kohl Corp’s Board of Directors

Image Source: Kohl’s Corporation

A group of activist investors with a 9.5% joint stake in Kohl’s Corporation (NYSE: NYSE: 9.5%) KSS) Is trying to gain control of the department store’s board of directors as a way to turn the business around and increase its market value.

so Letter to shareholders Investors (Macellum Advisors, Ancora Holdings, Legion Partners Asset Management, 4010 Capital) said on Monday that they are seeking change due to lost market share, stagnant sales and lower profit margins over the last decade.

The group described Kohl’s and Chain Chief Executive Officer Michelle Gass as “insufficient retail execution,” “too much executive compensation,” “failed to meet set goals,” and “retail.” He accused the long-term board of directors of inadequate experience. And it is responsible for “destroying a large amount of value”.

Investors add retail-experienced directors to Coles, reduce executive compensation, reduce inventory levels, and generate $ 7-8 billion in non-core real estate assets We are asking you to consider selling.

They also want to raise their share price to more than double its current level with the help of a $ 3 billion real estate sale leaseback program and a large share buyback program.

Macellum Chief Jonathan Duskin, former Burlington Stores CEO Thomas Kingsbury, and former Macy Chief Store Officer Jeffrey Kantor are among the nine candidates nominated for Cole’s 12 boards.

In 2019, after a similar push by activist investors in the same group at Bed Bath & Beyond, the chain renewed its board of directors and hired a new CEO. CNN report.

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Cole spokesman said Reuters The retailer’s board of directors and its management have been in talks with a group of investors since early December, stating that they “remain open to hearing new ideas.”

CNBC However, the company reported rejecting the group’s attempts. “Our new strategic plan already includes some of the initiatives they propose, and we have determined that the other ideas they propose do not increase shareholder value,” Coles said. Mr. says.

In October, the company gave a new overview strategy We believe in “accelerating growth and profitability.” The plan calls for Kohl’s to expand its selection of active wear and outdoor products, build a larger beauty business and improve its women’s clothing offerings.

Even before the COVID-19 pandemic, Coles struggled to lose shoppers to online competitors such as Inc (Nasdaq :). AMZN) And Target Corporation (NYSE: target) And Walmart Inc (NYSE: WMT).

Over the past year, many people have been at home to combat shelter-in-place, increasing Coles’ losses. Its total revenue fell 25% to $ 9.8 billion. 9 months ended on October 31stThe total loss was $ 506 million, compared to the previous year’s profit of $ 426 million.

Coles will report its fourth quarter results on March 2.


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