A group of activist investors has a large stake in Kohl’s Corp. and is trying to take control of the department store chain board, according to people who know the subject.
A group that includes activists Macellum Advisors GP LLC, Ancora Holdings Inc. and Legion Partners Asset Management LLC, in addition to 4010 Capital LLC, controls a combined 9.5% stake in Kohl’s and earlier this year appointed nine people for its 12-year board, People said.
Neither the size of the participation nor the offer of the board has been revealed.
The trio of activists, who previously partnered in a campaign that redefined the advice of home product retailer Bed Bath & Beyond Inc., say Kohl’s isn’t moving fast enough to cope with sales stagnant and declining operating margin, people said.
The company’s operating margin fell to 6.1% in 2019 from 11.5% in 2011, while its sales varied little. Then the coronavirus pandemic hit and total revenue fell 25%, to $ 9.8 billion, during the nine months ended Oct. 31.