Kohl’s Rejects Investor Group Takeover Attempt
MENOMONEE FALLS, WIS. — Kohl’s Corp. (NYSE: KSS) has rejected the attempt by an investor group to seize control of its board of directors, saying the effort would disrupt the company’s momentum and growth strategy. The investor group consists of Macellum Advisors GP LLC, Legion Partners Holdings LLC, Ancora Advisors LLC and 4010 Capital LLC.
The Kohl’s board and management team had been engaged in discussions with the group since early December, but this week was the first time the group shared its plans to create value. Kohl’s says its strategic plan already includes several initiatives they propose and that some ideas would not be accretive to shareholder value. The investors wanted to add directors with deep retail experience, cut executive compensation, slash inventory levels and consider selling noncore real estate, according to CNBC.
The Kohl’s board will continue to engage with the investor group with the goal of identifying new ideas that could enhance shareholder value. Based in Menomonee Falls, Kohl’s operates more than 1,100 stores in 49 states. The retailer’s shares soared more than 8 percent in trading Monday, according to CNBC. The stock price closed at $55.97 per share Monday, up from $43.13 per share one year ago.