Kohl’s Urges Shareholders to Reject Activist Macellum’s Proposal Ahead of Annual Meeting in New Letter

Kohl’s is calling on its shareholders to reject activist investor Macellum Advisors’ proposal ahead of its annual meeting in May amid pressure for the retailer to sell itself. In a new letter sent to investors on Thursday, Kohl’s is pushing back on Macellum’s campaign to add new directors to the retailer’s board, calling Macellum’s nominees an “unqualified slate.” “Macellum is attempting to take control of your board with an inexperienced, unqualified slate,” Kohl’s wrote in the letter. “Six of 10 nominees have never served on a public company board, and none have served on a retail company board of comparable size to Kohl’s. In addition, Macellum is promoting an ever-changing narrative, misinformed claims, and value-destructive proposals, all of which reveal a reckless and short-term approach that is not in the interest of driving long-term, sustainable value.” The Wisconsin-based retailer went on to state that Macellum has offered “virtually no new ideas,” with the few ideas they have presented are “short-term focused and likely to destroy significant value.” “The sale leasebacks that they are demanding are an inefficient source of financing that would negatively impact margins by adding unnecessary rent expenses in perpetuity and risk Kohl’s investment-grade rating,” Kohl’s added. Macellum Advisors, which owns nearly 5%

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