Activist investor Ancora Holdings of Cleveland is pushing for big changes at retail giant Kohl's.
Ancora on Thursday, Sept. 22, sent a letter to the Kohl's board (you can read it here) that seeks the replacement of CEO Michelle Gass and chairman Peter Boneparth. The firm, which has a 2.5% stake in Kohl's, wants new leadership so the company can revamp its business.
Reuters reported the move by Ancora "marks the beginning of a new round of shareholder unrest for Kohl's after the company explored a sale and decided in July to remain independent, leading to a plunge in its shares and disappointing investors who had pushed for a deal."
The news service noted that the letter, signed by Ancora CEO Frederick DiSanto and president James Chadwick, did not say who the successors should be.
"Kohl's needs new leadership with demonstrated experience in cost containment, margin expansion, product catalog optimization and, most importantly, turnarounds," the letter stated.
Menomonee Falls, Wisconsin-based Kohl's, which operates more than 1,100 stores in the United States, "has seen its stock tumble 48% in the last 52 weeks and reported a 63% drop in net income and 8% lower store sales in its most recent quarter that ended July 30," according to Reuters. It "rejected multiple offers to sell itself this year, telling bidders it believed its shares were worth more than $70 per share."
The stock ended trading on Wednesday at $27.90, giving it a market value of $3.3 billion.
CNBC noted that Ancora has a history with Kohl's.
"The activist investor, along with Macellum Advisors, attempted to seize control of Kohl's board in 2021," CNBC said. "In that attempt, Ancora, along with other stakeholders, pushed for new directors with retail experience, inventory reduction and the sale of Kohl's real estate. Kohl's pushed back against the endeavor, and the two parties settled to add three new directors."
CNBC noted that Gass came from Starbucks to take over as CEO for Kevin Mansell in 2018, with plans including the expansion of Sephora's presence in Kohl's stores. Ancora called her a "talented leader" and praised the Sephora partnership. Boneparth has been a director at the company since 2008 and became chairman this year.
"During the Boneparth era, the board has created an environment in which Ms. Gass is no longer well-positioned to lead," the Ancora letter stated.
Kohl's as of 11:30 a.m. Thursday had not responded to the Ancora letter.
Bring a sense of adventure to this fun Wall Street Journal story (with comments from a couple of Ohioans) about ... Bigfoot.
Amy Bue set out after nightfall armed with a thermal-imaging camera and two-way radio. The English teacher from Youngstown, Ohio, was hoping to finally get a clear look at Bigfoot.
In dense woods northeast of Pittsburgh, she hiked with a group that included a civil engineer, a wildlife filmmaker and a Zumba teacher. In the darkness they whooped, made loud knocks and let out a long, mournful cry known as the Ohio howl. Then they sat silent for a reply.
"A lot of Bigfooting is just sitting and waiting and listening," she whispered.
Seems a little out there, right? Sure, but as the Journal notes, "a growing number of sober-minded researchers have been dipping their toes into the Bigfoot world."
Several groups, including one in Oklahoma and another in Washington state, "have members who have been aggregating eyewitness reports into databases, searching for DNA and bringing their expertise to the analysis of hair samples, footprints and grunts and howls recorded in the woods," the paper says. "Many say they would like the subject to become less taboo in scientific circles but at this point prefer that their employers don't know about their interest."
John Hickenbottom, a naturalist with the Ohio Department of Natural Resources at Salt Fork State Park, tells the paper he used to be dismissive of "dads in tube socks and cargo shorts saying 'Have you ever seen Bigfoot?'" After some research, he considers himself an "open-minded skeptic."
He said he hears about two credible-seeming stories of sightings a week during the summer, though he's "never had anyone stumble into my nature center with leaves in their hair saying 'Oh my God, I just saw Bigfoot.'"
Bue, the Youngstown teacher, hosts a twice-monthly online meeting for primatologists, wildlife biologists, anthropologists and others to discuss matters from habitat to how the mechanics of primate movement could be used to authenticate tracks. Usually more than 40 scientists and dedicated amateurs attend.
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