US Department store operator Kohl’s is on course for a new showdown with hedge fund investors including Macellum Capital Management LLC and Ancora Advisors after deciding against selling much of its real estate assets and then leasing them back, according to a report by Reuters.
Macellum and Ancora are among a group of hedge funds that are keen to see Kohl’s return money to shareholders via a real estate sale-leaseback deal and have launched challenges over the past two years that have seen three newcomers joining the company’s board.
The report cites Morningstar analysts as saying that with Kohl’s shares down 37% year-to-date, double the drop of the broader stock market, the company, which unsuccessfully tried to sell itself in the first half of 2022, could face another proxy contest at its annual shareholder meeting in spring 2023.
Chief executive Michelle Gass announced this month that she is leaving the business to join Levi Strauss & Co, leading to more uncertainty over the company’s direction.
