A group of activist investors has a large stake in Kohl’s Corp. and is trying to take control of the department store chain’s board, 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, nominated nine people for his now 12 people. board, people said.
Neither the size of the bet nor the board’s offer has been previously disclosed.
The trio of activists, who previously came together in a campaign that remade the board of household goods retailer Bed Bath & Beyond Inc., believe Kohl’s is not moving fast enough to address stagnant sales and decreased operating margin, problems that predate the pandemic. people said.
The company’s operating margin fell to 6.1% in 2019 from 11.5% in 2011, while its sales changed little. Then came the coronavirus pandemic, and total revenue fell 25% to $ 9.8 billion in the nine months ended October 31. Losses for the period totaled $ 506 million compared to a gain of $ 426 million a year earlier.