With the launch of self-pickup, Kohl’s online shoppers can skip the trip to the customer service counter.
NEW YORK – Macellum Advisors claim that Kohl’s is being guided by a “shadow board” that has created a state of “permanent stagnation”.
A hedge fund that owns nearly 5% of Kohl’s outstanding common stock has revealed that it has been meeting privately with the company’s chairman, Peter Boneparth, over the past two-and-a-half months, replacing a long-serving director. I asked for
In an open letter to Kohl shareholders this morning, Macellum said Kohl’s cash fell by more than $2 billion in the second quarter of this year, its lowest cash level since 2006 and the company’s largest year-over-year cash decline. said it was. He also noted that Cole’s long-term credit rating had been downgraded to ‘junk’ by S&P Global Ratings.
“In our view, Kohl’s operational issues go beyond macroeconomic variables and, although communicated to the board and management two years ago, first privately and then publicly, have not been addressed. It stems from a self-injury problem that is not self-inflicted,” writes Macellum’s Jonathan Duskin. Executive employee.
Earlier this year, Macellum submitted a replacement list of directors for election by Cole’s shareholders. At the time, the company was asking the retailer to sell its business. Kohl’s began considering a takeover offer ahead of its annual shareholder meeting in May, but shareholders rejected his Macellum’s proposed board. A few weeks later, Kohl’s lead bidder dropped out, and the retailer’s board announced it would not pursue any further acquisitions.
“The circumstances and facts surrounding Cole were different when he voted at the 2022 Annual Meeting,” Duskin wrote in today’s letter.
He accused Cole’s board of directors of making misleading statements about a potential sale of the company, including arguing that having a new set of directors could disrupt the process. was included.
“As we feared, the sale process has now failed, the company’s operating performance has deteriorated significantly and the board remains non-functional,” he added.
Macellum is urging shareholders to push for a board review immediately rather than waiting for its next annual shareholder meeting in May 2023.
At press time, Coles had not publicly responded to the letter.
