Activist investor Macellum asks Kohl's to explore sale, other options

[January 18, 2022]  (Reuters) -Activist hedge fund Macellum Advisors GP LLC said on Tuesday Kohl's Corp should explore strategic alternatives, including a sale, if the department store chain's board is "unwilling to pursue improvements."

Macellum, which holds nearly 5% of the outstanding common shares of Kohl's, said there were well-capitalized strategic and financial buyers that could pay a meaningful premium to acquire the retailer.

Kohl's did not immediately respond to a Reuters request for comment.

The company has previously faced pressure from another activist investor, pushing it to consider a sale of the company or separate its e-commerce division to improve its lagging stock price.

Kohl's board and management had spent another year "materially mismanaging the business", Macellum said on Tuesday, adding that the company's shares had fallen 22% since it settled with the investor for two director designees in April last year.

Macellum also said it planned to nominate a slate of director candidates unless Kohl's board decides to work with it on a refresh and implement changes to optimize its balance sheet.

(Reporting by Praveen Paramasivam in Bengaluru; Editing by Ramakrishnan M.)

 

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