Macellum Issues Statement Regarding the Need for the Kohl’s Board to Complete a Value-Maximizing Sale as Retail Sector Peers Outperform

Rhea-AI Summary

Macellum Advisors, owning nearly 5% of Kohl's shares, criticized the company's recent performance compared to peers like Dillard's and Macy’s. They attribute Kohl's struggles to poor management and ineffective strategies, which have led to disappointing results. Macellum believes that Kohl's has substantial potential if led by a more capable team. They also indicated interest from buyers for Kohl's at a premium price, urging shareholders to pressure the Board to accept any strong offers and to focus on preserving capital during this process.

Positive

• Interest from credible buyers for Kohl's at a meaningful premium.

Negative

• Poor recent performance compared to industry peers.
• Ineffective Board and management leading to underperformance.
• Weak three-year strategic plan has not been well received by the market.

NEW YORK--(BUSINESS WIRE)-- Macellum Advisors GP, LLC (together with its affiliates, “Macellum” or “we”), a long-term holder of nearly 5% of the outstanding common shares of Kohl’s Corporation (NYSE: KSS) (“Kohl’s” or the “Company”), today issued the following statement regarding the Company and its Board of Directors (the “Board”) attributable to its Managing Partner, Jonathan Duskin:

“The strong financial results recently released by Dillard’s, Macy’s and Nordstrom reinforce the massive value creation opportunities for well-run retailers executing credible plans. Indeed, retailers with clear value propositions, effective leadership teams and viable operating strategies are adapting to the post-pandemic economic landscape and starting to sustain profitable growth. The dismal results produced by Kohl’s in recent quarters cannot be blamed on economic headwinds, supply chain issues and sweeping deterioration of the industry. In our view, it is crystal clear that Kohl’s continues to lag peers and underperform because of its ineffective Board, weak management team and illogical three-year plan, which the market has already reacted extremely poorly to. Fortunately, there is a silver lining: Kohl’s is a uniquely positioned retailer with significant potential that can be unlocked by a better leadership team with a superior strategy. This week, shareholders were given a little insight into where the stock is headed if the Company is not sold. Reports indicate that several credible buyers remain interested in acquiring Kohl’s at a meaningful premium. We strongly urge all shareholders to insist the Board accept the best and highest offer received at the conclusion of the ongoing sale process. Lastly, we call on the Board to stop burning shareholder capital and enter into cash preservation mode until a deal is consummated.”

About Macellum

Macellum Capital Management is an activist investment firm, with deep expertise in the retail and consumer sectors, founded in 2009 by Jonathan Duskin. Macellum invests in undervalued companies that it believes can appreciate significantly in value as a result of a change in corporate strategy or improvements in operations, capital allocation or corporate governance. Macellum’s investment team, advisors and network of industry experts draw upon their extensive strategic, operating and boardroom experience to assist companies in designing and implementing initiatives to improve long-term shareholder value. Macellum prefers to constructively engage with management to improve its governance and performance for the benefit of all stockholders. However, when management is entrenched, Macellum has run successful proxy contests to effectuate meaningful change. Macellum has run successful election contests to effectuate meaningful change at many companies, including at The Children’s Place Inc., Citi Trends, Inc., Bed Bath and Beyond and Big Lots, Inc. Learn more at www.macellumcapitalmanagement.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220527005057/en/

Longacre Square Partners

Greg Marose / Casie Connolly, 646-386-0091

macellum@longacresquare.com

Source: Macellum Advisors GP, LLC

FAQ

What did Macellum Advisors say about Kohl's recent performance on KSS?

Macellum Advisors criticized Kohl's performance, stating it lags behind peers like Dillard's and Macy’s due to poor management and an ineffective Board.

What are the major issues highlighted by Macellum regarding Kohl's leadership?

Macellum pointed to weak management and an illogical three-year plan as primary issues affecting Kohl's performance.

Is there interest in acquiring Kohl's according to Macellum?

Yes, Macellum noted that several credible buyers are interested in acquiring Kohl's at a meaningful premium.

What do shareholders want the Board of Kohl's to do based on Macellum's statement?

Shareholders are urged to pressure the Board to accept the best acquisition offers and to prioritize cash preservation until a deal is finalized.

How much of Kohl's common shares does Macellum Advisors own?

Macellum Advisors holds nearly 5% of the outstanding common shares of Kohl's Corporation.