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Activist investor Macellum asks Kohl’s to explore sale, other options -Breaking

by Mike Robinson

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© Reuters. FILE PHOTO – The sign at the Kohl’s Store in Broomfield Colorado, February 27, 2014 is shown. REUTERS/Rick Wilking (UNITED STATES – Tags: BUSINESS LOGO)

(Reuters) Activist hedge fund Macellum Advisors GP LLC stated Tuesday that Kohl’s Corp (NYSE 🙂 should consider strategic alternatives including a sale if its board “is unwilling to pursue improvement.”

Macellum holds about 5% of Kohl’s outstanding common shares. However, it said that there are well-capitalized financial and strategic buyers who could offer a significant premium in order to purchase the retailer.

Kohl’s didn’t immediately reply to Reuters’ request for comment.

One activist investor had previously put pressure on the company, forcing it to either sell or seperate its e-commerce unit to boost its stock prices.

Macellum stated that Kohl’s management and board had “materially mismanaged the business” for another year. He also said Tuesday that Kohl’s share price had dropped 22% in the year since the settlement with an investor to name two directors.

Macellum said that it was also planning to nominate director candidates, unless Kohl’s board agrees to partner with them on a refresh of its financial statements and to implement improvements to maximize it.

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