A group of activist investors has a large stake in Kohl’s Corp. and is trying to take over the board of the department store chain, 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, appointed nine people for the post of now 12 people board, people said.
Neither the size of the bet nor the board’s bet has been revealed previously.
The trio of activists, who previously joined in a campaign that overhauled the board of household appliances retailer Bed Bath & Beyond Inc., think Kohl’s is not acting fast enough to deal with stagnating sales and falling margins operational, issues prior to the pandemic people said.
The company’s operating margin dropped to 6.1% in 2019 from 11.5% in 2011, while its sales have hardly changed. Then, the coronavirus pandemic hit and total revenue dropped 25% to $ 9.8 billion in the nine months ended October 31. Losses for the period totaled $ 506 million, compared with a profit of $ 426 million a year earlier.