Kohl’s (NYSE:KSS) shares soared more than 9% in pre-market trading Monday after a group of activist investors confirmed it has nominated nine directors to the company’s board, looking to turn the business around and boost its stock.
The group consisting of Macellum Advisors, Ancora Holdings, Legion Partners Asset
Management and 4010 Capital owns a combined 9.5% stake.
The investors want Kohl’s to add directors with deep retail experience, cut executive compensation, slash inventory levels and consider selling some of its noncore real estate.
The investors estimate the real estate assets could yield $7 billion to $8 billion.
They are hoping to drive the stock price more than two-times higher than current levels, through a sale-leaseback program for $3 billion worth of real estate, and a major share repurchase program.
They are hoping to drive the stock price more than two-times higher than current levels, through a sale-leaseback program for $3 billion worth of real estate, and a major share repurchase program.
A spokeswoman for Kohl’s told various media outlets in an emailed statement that the retailer’s board and its management team have been engaged in talks with the investor group since early December.
"We remain open to hearing new ideas," she said. "Kohl’s is deeply committed to enhancing shareholder value."
As of Friday’s market close, Kohl’s shares are up nearly 20% from a year ago. With a market cap of about $8.3 billion, Kohl’s has grown to be larger than Nordstrom (NYSE:JWM) and Macy’s (NYSE:M).
KSS shares leaped $4.09, or 7.8%, to $56.84.
