Update 4:45pm : Adds Axios report on potential CEO replacement.
Activist investor Ancora Holdings, one of the hedge funds that pushed for a board shake-up at Kohl's ( NYSE: KSS ) last year, is now advocating for the the ouster of the retailers' CEO and board chairman. Kohl's ticked up 0.3% in premarket trading.
Ancora, which has a 2.5% stake in Kohl's ( KSS ), wants the retailer to replace CEO Michelle Gass and board Chairman Peter Boneparth, according to a letter viewed by Seeking Alpha.
The push comes after Kohl's shares have plunged 22% since Kohl's ended a strategic review and potential sale of itself to Vitamin Shoppe owner Franchise Group ( FRG ) in early July after investors, including Ancora, had pushed the company to sell itself.
The "combination of the Boneparth-led Board’s ineffective leadership and management’s poor execution, as evidenced by the Company’s numbers, compel us to call for a new Chairman and Chief Executive Officer at this critical fork in the road," Ancora CEO Frederick DiSanto and President James Chadwick wrote in a letter. "We urge the Board to announce a thoughtful succession plan and run a robust search process that accounts for interviewing a highly diverse group of qualified candidates."
Kohl's ( KSS ) board member Thomas Kingsbury is among candidates that activist Ancora is likely to push as a replacement for Gass, Axios Pro reported, citing two people familiar. Another source told the publication that Kingsbury may also be a candidate to replace Boneparth.
Last April Kohl’s announced it had entered a settlement agreement with a group of investors that includes Macellum Advisors, Ancora Holdings, Legion Partners Asset Management and 4010 Capital.
The news was earlier reported by Reuters.
The latest report also comes after a Reuters item earlier this month that Oak Street Real Estate made an offer to buy as much as $2 billion of property from the d epartment store chain.
For further details see:
Kohl's sees push from activist investor for removal of CEO, Chairman (update)