By Svea Herbst-Bayliss

NEW YORK (Reuters) – Activist hedge fund Macellum Advisors GP LLC is planning to appoint administrators to Kohl’s Corp (NYSE:)’s board as a result of it believes the U.S. retailer has not performed sufficient to enhance its enterprise, two folks accustomed to the matter mentioned.

It could be the second time that Macellum has pushed for modifications at Kohl’s. It sought to exchange 9 board administrators earlier this yr in a marketing campaign performed with hedge funds Ancora Holdings Inc and Legion Companions Asset Administration LLC.

The traders agreed to drop that problem when Kohl’s expanded its 11-member board by three administrators.

Macellum, which is run by hedge fund veteran Jonathan Duskin, is getting ready a slate of nominees with retail and working expertise to once more problem the Kohl’s board early subsequent yr, the sources mentioned.

The agency is anxious about Kohl’s languishing inventory value and the truth that public markets should not valuing the bricks and mortar retailer correctly regardless of its ample free money move and efforts made by administration.

Kohl’s inventory is buying and selling roughly the place it was a decade in the past. If the board had new administrators with extra operational expertise, the corporate would possibly be capable to pursue steps like betting extra on ecommerce or promoting its actual property to enhance the inventory value, the folks mentioned.

The sources requested anonymity as a result of the matter is confidential. Duskin declined to remark and a Macellum spokesman mentioned a standstill settlement with Kohl’s, which expires Jan. 11, prevents the fund from making any assertion.

It was not clear whether or not Ancora and Legion would possibly once more be a part of a bunch. Ancora didn’t reply to a request for remark and Legion couldn’t be reached for remark.

A spokesman for Kohl’s was not instantly accessible for remark.

Kohl’s already faces strain from one other activist shareholder, Engine Capital. The agency, run by Arnaud Ajdler, urged Kohl’s this week to promote itself or think about separating its e-commerce enterprise.

“My primary precedence, the primary precedence of the board, is to drive shareholder worth,” CEO Michelle Gass advised CNBC on Wednesday.

Kohl’s shares have risen 26% this yr, trailing positive factors made by rival retailers like Macy’s (NYSE:), whose inventory value has jumped 143%.

As a part of the settlement with the hedge funds earlier this yr, Kohl’s added former Lululemon CEO Christine Day, Thomas Kingsbury, a former CEO of Burlington Shops (NYSE:), and Margaret Jenkins, a restaurant business veteran, to its board.

Headquartered in Menomonee Falls, Wisconsin, Kohl’s has 1,162 shops in the US and a market worth of $7.7 billion.