According to a report from the Wall Street Journal, a group of activist investors who have a stake of around 9.5% in Kohl’s Corp is attempting to take control of the department store chain’s board.
The activist investors include Ancora Holdings Inc, Macellum Advisors GP LLC, 4010 Capital LLC, and Legion Partners Asset Management LLC.
Earlier this year they nominated nine people to Kohl’s now 12-member board, said the report citing sources familiar with the matter at hand.
They are calling on Kohl’s to take a range of actions, including adding directors who have retail experience and who can work with Michelle Gass, Kohl’s CEO; consider a sale-leaseback of some of its $7 billion-plus in non-core real estate holdings, said the report citing sources familiar with the matter at hand.
Earlier neither the number of activist investors nor the size of their stake was known.
The activist investors are calling on Kohl’s to trim inventory levels, provide more enticing discounts, improve offerings, and make promotions easier for customers to follow.
According to Kohl’s representative, the company’s board and management team have been in discussions with the investor group since early December and “remain open to hearing new ideas.”
“The investor group’s nominees to Kohl’s board include Macellum Chief Jonathan Duskin and former Burlington Stores Inc CEO Thomas Kingsbury,” said WSJ in its report.