Macellum Advisors is again pushing for changes at boardroom level at struggling US department store chain Kohl’s and has written a letter to fellow shareholders outlining its plans.
The activist hedge, a long-term holder of nearly 5% on the outstanding common shares of Kohl’s Corporation, has issued an open letter to other shareholders regard the need for what it describes as an “immediate and targeted refresh” of the company’s board.
Macellum wants to see some of Kohl’s long-tenured directors replaced with its own candidates and its ‘hit-list’ includes chairman Peter Boneparth and other members of the company’s executive committee. Earlier this year, Macellum launched a failed attempt to replace 10 directors at Kohl’s, which has seen its market capitalisation fall by half this year to around $3 billion.
Writing in the letter, Macellum said: “The facts supporting the case for immediate Board change at Kohl’s has become abundantly clear to us. In an effort not to be a distraction, we have attempted to work privately with the Board over the past two-and-a-half months to explore a plan that includes replacing several long-tenured directors with independent, qualified retail experts. The Board contends that the shareholder vote at the 2022 Annual Meeting of Shareholders (“2022 Annual Meeting”) is proof they have shareholders’ support today.
“We believe that had the true degree of business deterioration, senior executive departures and flawed sale process been known by shareholders at the time of the 2022 Annual Meeting, there may have been a different outcome, which is why we write today.
“We believe there is an urgent need for change now, rather than waiting another eight months for another contested election at the 2023 Annual Meeting. If our fellow shareholders agree, we hope you will make your voices heard.”
