A group of activist investors holds a large stake in Kohl’s Corp. and is trying to take control of the store’s board of directors, 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, control a combined 9.5% stake in Kohl’s and earlier this year nominated nine people for the now 12-person board, people said.
Neither the size of the stake nor the offer offered by the council have been previously revealed.
The trio of activists, who previously joined a campaign to rebuild the board of household products Bed Bath & Beyond Inc., believe that Kohl is not moving fast enough to address stagnant sales and declining operating margins. , problems that precede the pandemic, people said.
The company’s operating margin decreased to 6.1% in 2019 from 11.5% in 2011, while its sales were slightly changed. Then the coronavirus pandemic hit, and total revenues fell 25 percent to $ 9.8 billion in the nine months ended Oct. 31. Losses for this period totaled $ 506 million, compared to a profit of $ 426 million a year earlier.