A group of activist investors has a large stake in Kohl’s Corp. and is trying to take over the running of the department store chain, according to people familiar with the case.
A group of 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 nominated nine people to the now-12-person board earlier this year, the people said.
Neither the size of the bet nor the previous bid on the board has been disclosed.
The trio of activists, who previously collaborated on a campaign that the board of household goods retailer Bed Bath & Beyond Inc. re-formed, thinks Kohl’s is not moving fast enough to address stagnant sales and declining operating margin, issues that predate the pandemic, the people said.
The company’s operating margin decreased from 11.5% in 2011 to 6.1% in 2019, while sales changed little. Then the coronavirus pandemic struck, and total sales fell 25% to $ 9.8 billion in the nine months ending Oct. 31. Losses for the period totaled $ 506 million, compared to a profit of $ 426 million a year earlier.