Macellum calls out Kohl’s over ‘anti-shareholder actions’

Macellum calls out Kohl’s over ‘anti-shareholder actions’

THE WHAT? A long-term holder of almost 5 percent of Kohl’s Corporation shares, Macellum Advisors has issued a press release highlighting what it has dubbed the department store’s ‘anti-shareholder actions and poor corporate governance’.

THE DETAILS Macellum claims that Kohl’s rejection of indications of interest was hasty and, together with its failure to announce a robust strategic review, proves that the board is entrenched and lacks objectivity.  

THE WHY? Jonathan Duskin, Macellum’s Managing Partner, commented, “In light of the Board’s history of overseeing ineffective business plans and presiding over terrible returns, we can only assume these anti-shareholder actions represent a desperate ploy to try to entrench the incumbents. Given that the company’s share price has deflated in recent weeks to approximately 17 percent below Acacia Research Corporation’s disclosed initial offer of US$64 per share and even further compared to a reported offer price of US$65 per share from Sycamore Partners, it seems we are already witnessing the negative effects of the Board’s attempts to chill a normal course sale process. We do not believe investors can trust this Board to oversee a transparent and rigorous process to maximize shareholder returns.”