Kohl shareholders keep their board of directors | PYMNTS.com

Kohl shareholders have rejected a bid from an activist investor to remove 10 members of the retailer’s board of directors as the company prepares for a possible sale.

As The Wall Street Journal reported on Wednesday, May 11, each of the company’s 13 directors was re-elected at Kohl’s annual meeting of shareholders.

Learn more: Macellum advisers urge Kohl shareholders to shake up board

Kohl’s has come under pressure from Macellum Advisors GP LLC, which wants the retail chain to consider changes such as selling and leasing real estate and selling the business outright.

Macellum urged voters earlier this week to pick his board nominees and uproot the status quo at the company, which the investor says has failed to reach its potential.

In a letter sent Monday, May 9, Jonathan Duskin, Macellum’s managing partner, urged fellow shareholders to “elect their aligned and experienced nominees” at the meeting. Last year the board grew to 13 members following the addition of Macellum-backed nominees Thomas Kingsbury and Margaret Jenkins.

Kohl’s proxy advisory firm had argued last week with shareholders to retain the current board.

Read more: Kohl’s consulting firm urges shareholders to keep current board

“We believe shareholders would be best served by supporting the current board and its efforts to improve shareholder value, whether that takes the form of continued oversight of the existing standalone strategy or monitoring the ongoing sale process. “wrote voting advisory firm Glass Lewis in its recommendations.

The retailer is considering offers from bidders including private equity firm Sycamore Partners and Canadian Hudson’s Bay Company, The Wall Street Journal reported.

Last month, PYMNTS reported that JCPenney owners Simon Property and Brookfield Asset Management were seeking an acquisition deal for Kohl’s that values ​​the department store at around $8.6 billion.

Kohl CEO Michelle Gass told analysts on the company’s fourth quarter earnings call in April that the retailer’s strategic and financial plan will deliver substantial value.

The company is also “testing and measuring this plan against other alternatives,” Gass said, in case its efforts for an omnichannel turnaround fail, before citing the retailer’s hiring of Goldman Sachs to “commit with interested parties.

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