Activist investors appoint nine directors to Kohl board

A group of activist investors has a significant stake in Kohl’s Corp. and is trying to take control of the board of directors of the department store chain, according to people familiar with the matter.

A group that includes activists Macellum Advisors GP LLC, Ancora Holdings Inc. and Legion Partners Asset Management LLC, as well as 4010 Capital LLC, controls a combined 9.5% stake in Kohl’s and earlier this year appointed nine people to its staff of 12 people. board of directors, people said.

Neither the stake size nor the board’s offer previously was disclosed.

The trio of activists, who had previously partnered with a campaign to remake the board of directors of housewares retailer Bed Bath & Beyond Inc., believe Kohl’s is not acting fast enough to address the stagnating sales and declining operating margin, pre-pandemic problems. people said.

The company’s operating margin fell to 6.1% in 2019 from 11.5% in 2011, while its sales were little changed. Then the coronavirus pandemic struck and total revenue fell 25% to $ 9.8 billion in the nine months ended October 31. Losses for the period totaled $ 506 million, compared with a profit of $ 426 million a year earlier.