By: Economic & Finance Report
Activist Investor group Engine Capital; which is a top investor in the Kohl’s company; has alerted Kohl’s board of directors that it should vote to sell the US retail chain in its entirety; to willing buyers. This has been presented to the Kohl’s board before, because of the underperforming revenue by the retail giant. Macellum Advisors was the past activist investment group; who insisted Kohl’s to sell its retail business in (April 2021).
Kohl’s settled with Macellum Advisors for $2 billion and the protest by Macellum was swept under the “rug”; until recently when Engine Capital on Monday, December 6, 2021 sent its own letter to the Kohl’s board of directors; for its lack of progress and transparency within the corporation.
Engine Capital has insisted that Kohl’s has been underperforming by approx. 19%; compared to other retail store chains and that some sort of turnaround is needed to happen; because Kohl’s is siphoning off progressive revenue. Engine Capital suggests either Kohl’s board to vote on spinning off divisions of the retail chain; or completely selling the company in its entirety. -SB
Image Source: Milwaukee Journal Sentinel