Kohl’s (NYSE:KSS) on Thursday sent a letter to shareholders in which it pushed back against activist investor Macellum’s campaign to add new directors to the retailer’s board.
In the letter, which comes ahead of Kohl’s annual meeting with shareholders in May, the retailer called Macellum’s nominees an “unqualified slate.”
“Macellum is promoting an ever-changing narrative, misinformed claims, and value-destructive proposals, all of which reveal a reckless and short-term approach that is not in the interest of driving long-term, sustainable value,” Kohl’s said.
“Your Board, “the letter begins, “has the skills necessary to oversee Kohl’s strategy while exploring any potential value-maximizing opportunities.
“Comprised of 13 independent directors and our CEO, your Board has industry-leading experience in areas critical to our growth, including retail, e-commerce, and technology, as well as robust financial and M&A expertise. Your Board is fully engaged and will continue to take action to maximize value for all shareholders.”
The letter continues, “Macellum is attempting to take control of your Board with an inexperienced, unqualified slate. Six of 10 nominees have never served on a public company board, and none have served on a retail company board of comparable size to Kohl’s.
“In addition, Macellum is promoting an ever-changing narrative, misinformed claims, and value-destructive proposals, all of which reveal a reckless and short-term approach that is not in the interest of driving long-term, sustainable value.”
KSS shares dipped 16 cents to $61.26.