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Activist investors attempting to take control of Kohl chain's board: WSJ
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A group of activist investors has a big stake in Kohl’s Corp. and is attempting to take control of the department-store chain’s board, according to people familiar with the matter.
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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 to its now-12-person board, the people said.
Neither the size of the stake nor the board bid previously has been revealed.
KOHL'S TO LAUNCH PRIVATE-LABEL ATHLEISURE BRAND
The trio of activists, which previously teamed up on a campaign that remade the board of housewares retailer Bed Bath & Beyond Inc., BBBY 0.68% thinks Kohl’s isn’t moving fast enough to address stagnant sales and declining operating margin, issues that predate the pandemic, the 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 hit, and total revenue fell 25% to $9.8 billion in the nine months ended Oct. 31. Losses for the period totaled $506 million compared with a profit of $426 million a year before.
Kohl’s is set to report its fourth-quarter and full-year 2020 results March 2.