(Reuters) – US-based hedge fund Engine Capital LP is pushing Kohl’s Corp. to consider selling the company or splitting up its e-commerce division to improve its lagging share price.
Engine Capital, which owns about 1 percent of Kohl’s, said Monday that the department store has underperformed the S&P 500 and other retailers in recent years.
The New York-based hedge fund also said that Kohl’s should consider a strategic review of the company as a whole and even sell to a single buyer who could offer a meaningful premium, adding it believes that there are sponsors that will pay as little as $75 per share.
Shares of Kohl’s, which did not respond to a request for comment, were up about 3% in pre-market trading.
Engine Capital’s proposal comes at a time when retailers have doubled their online businesses after an e-commerce boom during the COVID-19 pandemic caused people to shop online as they avoided crowds. crowded at traditional stores.
In early October, activist investor Jana Partners urged Macy’s Inc to sell its digital business, after which the retailer said it was working with consulting firm AlixPartners to review the business structure. mine.
Upscale department store chain Saks Fifth Avenue, owned by Hudson, said it will cut off e-commerce, following a $500 million investment from private equity firm Insight Partners into its online business. .
Engine Capital says Kohl’s e-commerce business alone could be worth $12.4 billion or more. The Wall Street Journal first reported on Sunday.
(Reporting by Deborah Sophia in Bengaluru; Editing by Shinjini Ganguli)
https://wsau.com/2021/12/06/engine-capital-pushes-kohls-to-review-sale-separate-e-commerce-business/ Engine Capital pushes Kohl’s to rethink sales, separate e-commerce business | WSAU News / Talk 550 AM · 99.9 FM