News: Latest News
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance Pro.CalendarSectors 
All NewsEconomyCurrencies & ForexEconomic EventsCryptocurrenciesCybersecurityPress Releases

Exclusive: Activist investor Macellum prepares Kohl's board challenge -sources

12/09/2021 | 09:26am EDT
FILE PHOTO: A Kohl's department store is seen in Austin

NEW YORK (Reuters) - Activist hedge fund Macellum Advisors GP LLC is planning to nominate directors to Kohl's Corp's board because it believes the U.S. retailer has not done enough to improve its business, two people familiar with the matter said.

It would be the second time that Macellum has pushed for changes at Kohl's. It sought to replace nine board directors earlier this year in a campaign conducted with hedge funds Ancora Holdings Inc and Legion Partners Asset Management LLC.

The investors agreed to drop that challenge when Kohl's expanded its 11-member board by three directors.

Macellum, which is run by hedge fund veteran Jonathan Duskin, is preparing a slate of nominees with retail and operating experience to again challenge the Kohl's board early next year, the sources said.

The firm is concerned about Kohl's languishing stock price and the fact that public markets are not valuing the bricks and mortar retailer properly despite its ample free cash flow and efforts made by management.

Kohl's stock is trading roughly where it was a decade ago. If the board had new directors with more operational experience, the company might be able to pursue steps like betting more on ecommerce or selling its real estate to improve the stock price, the people said.

The sources requested anonymity because the matter is confidential. Duskin declined to comment and a Macellum spokesman said a standstill agreement with Kohl's, which expires Jan. 11, prevents the fund from making any statement.

It was not clear whether Ancora and Legion might again be part of a group. Ancora did not respond to a request for comment and Legion could not be reached for comment.

A spokesman for Kohl's was not immediately available for comment.

Kohl's already faces pressure from another activist shareholder, Engine Capital. The firm, run by Arnaud Ajdler, urged Kohl's this week to sell itself or consider separating its e-commerce business.

"My number one priority, the number one priority of the board, is to drive shareholder value," CEO Michelle Gass told CNBC on Wednesday.

Kohl's shares have risen 26% this year, trailing gains made by rival retailers like Macy's, whose stock price has jumped 143%.

As part of the settlement with the hedge funds earlier this year, Kohl's added former Lululemon CEO Christine Day, Thomas Kingsbury, a former CEO of Burlington Stores, and Margaret Jenkins, a restaurant industry veteran, to its board.

Headquartered in Menomonee Falls, Wisconsin, Kohl's has 1,162 stores in the United States and a market value of $7.7 billion.

(Reporting by Svea Herbst-Bayliss in New York; editing by Richard Pullin)

By Svea Herbst-Bayliss


© Reuters 2021
Stocks mentioned in the article
ChangeLast1st jan.
BURLINGTON STORES, INC. 7.45% 156.29 Delayed Quote.-50.10%
Latest news "Economy & Forex"
05:56pBlackRock, other major McDonald's shareholders side with company in fight with Icahn
RE
05:48pUKRAINE AND RUSSIA : What you need to know right now
RE
05:48pAfter Texas massacre, U.S. senators discuss options against 'very slim' odds
RE
05:48pBiden to visit Texas 'in coming days' to console families of shooting victims
RE
05:46pRussia pounds Ukraine's east as town buries dead in mass grave
RE
05:45pTech Up on Risk Appetite, but Nvidia Falls After Hours -- Tech Roundup
DJ
05:44p'NO IDEA THIS WAS GOODBYE' : Texas families grieve on social media
RE
05:39pThe WSJ Dollar Index Rises 0.26% to 94.76 -- Data Talk
DJ
05:39pSterling Gains 0.34% to $1.2576 -- Data Talk
DJ
05:39pEuro Lost 0.51% to $1.0681 -- Data Talk
DJ
Latest news "Economy & Forex"