Kohl’s faces activist group seeking control of board

Bloomberg

Kohl’s Corp is under pressure from a group of activists who want to name nine directors to control its board and press the retailer to reduce inventory and streamline promotions, according to a person familiar with the situation.
The group holds a stake of about 9.5% in Menomonee Falls, Wisconsin-based Kohl’s, said the person, who asked not to be identified. The activists include Macellum Advisors GP LLC,
Ancora Holdings Inc and Legion Partners Asset Management LLC, as well as 4010 Capital LLC.
The group earlier this year nominated nine directors to join Kohl’s 12-person board, the person said. The board effort and the size of the stake were first reported by the Wall Street Journal.
“The Kohl’s board and management team have been engaged in discussions with the Investor Group since early December and we remain open to hearing new ideas,” Jen Johnson, a spokeswoman for Kohl’s, said in an emailed statement.
Like other major US retailers, Kohl’s struggled as the pandemic took hold in early 2020 and continued to hurt back-to-school sales in an era when many students are homebound. The company’s shares have rebounded since its disappointing third-quarter earnings report, rising about 80% since mid-November to $52.70.
The activists are looking to place experienced retailers on the board to work with CEO Michelle Gass and want her to consider a sale-leaseback of some non-core real estate, the person said. Even before the pandemic, the retailer had faced some recent struggles.