Activist Investor Urges Kohl's To Change Board Members: Report

  • Kohl’s Corp KSS faces the fury of activist investor, Macellum Advisors GP LLC, to make changes in its board.
  • The investor holds a 5% stake in Kohl’s and has urged the retailer to replace three or more directors, including its chairman.
  • The New York hedge fund’s talks with the company, the WSJ reported, to agree on changes to the board remained unfruitful.
  • The pressure comes after the retail chain called off discussions to sell its business to Franchise Group Inc FRG in July.
  • Kohl’s shares are down by nearly half so far in 2022 as consumer behavior changes amid an inflationary environment leading to a fall in sales.
  • “We believe there is an urgent need for change now, rather than waiting another eight months for another contested election at the 2023 annual meeting,” the report quoted Macellum CEO Jonathan Duskin writing in a draft of an open letter to be sent to Kohl’s shareholders.
  • The company, in response, said it was disappointed by the investor’s move to run another proxy fight in 2023.
  • “These engagements have been unproductive and a distraction from running the business during a challenging retail environment,” the report cited Kohl’s.
  • Price Action: KSS shares are trading higher by 2.31% at $27.00 in premarket on the last check Thursday.
  • Photo Via Wikimedia Commons
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