Kohl's Corp KSS is trading higher Tuesday after the company announced its shareholder, Macellum Advisors, issued a letter to Kohl's shareholders urging the company to make changes to its board of directors or explore a sale if it's unable to make other changes to boost its stock price.
In April, Kohl's reached a deal with a group of investors, including Macellum Advisors, in which the company agreed to add two of the group’s nominees to its board as independent directors.
Related Link: Activist Investor To Kohl's: Change Your Board Or Sell The Company
Macellum Advisors noted in its letter to shareholders that the stock has fallen 20% since the deal was reached and Kohl's has continued to materially mismanage its business.
The window to nominate board members opened on Jan. 12 and is expected to close sometime in February. Macellum Advisors is expected to select a new group of nominees for the board.
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Macellum Advisors owns about a 5% stake in Kohl's.
KSS Price Action: Kohl's has traded as low as $42.68 and as high as $64.80 over a 52-week period.
The stock was up 6.26% at $50.76 at time of publication.
Photo: Mike Mozart from Flickr.
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