An activist investor is threatening to sue Kohl’s, alleging that the department retail store chain withheld information about its weak efficiency previously this month — even as shareholders voted to re-elect its board.
The embattled retailer, which earlier this thirty day period won a proxy fight from Macellum Advisors about no matter whether to retain its board of directors, surprised Wall Road on Thursday with disappointing very first-quarter final results.
Kohl’s has put alone on the block and remaining bids are because of in a few of weeks. But as exclusively described by The Post on Thursday, some bidders were being alarmed by Kohl’s economical effects and may perhaps now be rethinking their provides.
“It was alarming to understand yesterday that the recent board seems to have withheld product information and facts from shareholders about the point out of Kohl’s in the lead-up to this year’s pivotal yearly meeting” on May possibly 11, Macellum taking care of associate Jonathan Duskin explained in a assertion.
Exclusively, buyers need to have been told that Kohl’s fiscal final results took a nosedive in the very first quarter and that two vital executives have been leaving the company in advance of their Might 11 vote on no matter if to preserve the existing board of directors, according to Macellum, which has reported a 5% stake in the corporation.
“We are actively exploring promises versus the board and will acquire legal action, if vital,” Duskin additional.
Kohl’s did not instantly reply to a ask for for remark. Its shares were being just lately down by far more than 10% on Friday to about $40.
In addition to slashing its gross sales and earnings forecast on Thursday in light of a 5.2% equivalent income decrease in the initially quarter, Kohl’s mentioned this week that its main merchandising officer and main advertising officer are leaving the corporation.
Macellum has claimed that Kohl’s ought to provide by itself or change its management, arguing that opponents are attaining current market share at its expense.