News – USA – Kohl’s shares rise as activist investor group plans to add 9 directors to board

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Kohl’s shares rose more than 9% in premarket trading Monday after a group of activist investors confirmed they appointed nine directors to the company’s board of directors to turn the business around and increase its holdings

The group consisting of Macellum Advisors, Ancora Holdings, Legion Partners Asset Management and 4010 Capital owns a combined 95% stake

Investors want Kohl’s to add directors with extensive retail experience, cut executive pay, cut inventory levels, and consider selling some of his non-core real estate – they estimate real estate assets to be between US $ 7 billion and US $ 8 billion – could bring in dollars

The group hopes to increase the share price through a sale-leaseback program for real estate valued at $ 3 billion USD and an extensive share buyback program, which was stated in a letter sent to, that it could hold more than twice what it is currently at Kohl’s shareholders on Monday

Kohl’s business was struggling even before the Covid pandemic, when the retailer was selling customers to online players like Amazon and big box companies like Target and Walmart, but losses have increased over the past year as many Americans have Stayed at Home after the Pandemic Kohl’s total sales fell 25% to $ 98 billion for the nine months ended October 31, while losses were $ 506 million, compared to a profit of $ 426 million last year p>
Current CEO Michelle Gass, a former Starbucks executive, took over Kevin Mansell in 2018.Some of her initiatives include expanding an Amazon return service at Kohl’s stores and adding hundreds of Sephora beauty salons to stores that launched earlier this fall should be

A Kohl’s spokeswoman told CNBC in an email that the retailer’s board of directors and its management team have been in discussions with the investor group since early December

“We are still open to new ideas,” she said, “Kohl’s is determined to increase shareholder value”

The group’s nominations include Jonathan Duskin, chief executive of Macellum, former CEO of Burlington Stores, Thomas Kingsbury, and Margaret Jenkins, chief marketing officer of Denny

Legion, Macellum and Ancora previously teamed up to redesign the board at Bed Bath & Beyond

At the close of the market on Friday, the Kohl shares had risen by almost 20% compared to the previous year. With a market capitalization of approx $ 8 billion, Kohl’s is bigger than Nordstrom and Macy’s

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Kohls, active shareholder, board of directors, investor, NYSE: KSS

News – USA – Kohls shares rise as activist investor group wants to add 9 directors to the board

Source: https://www.cnbc.com/2021/02/22/kohls-shares-soar-as-activist-investor-group-seeks-board-takeover.html