The board of directors at the Kohl's Corporation (NYSE: KSS) will be staying at their posts despite pressure from activist investor Macellum Advisors, the company noted in a press release.
"We would like to thank our shareholders for their support throughout this proxy contest," Board Chairman Peter Boneparth said. "While we have had differences with Macellum, this board is committed to serving the interests of all our shareholders. The board remains focused on running a robust and intentional review of strategic alternatives while executing our strategy to drive shareholder value. We appreciate the feedback we have received from our shareholders over the past several months and look forward to engaging with them further."
Despite its loss, Macellum Advisors noted that it wouldn't be "going away" and stated that "the vote was a referendum on a sale, and people who voted for the company bought the narrative that any changes of the board in the middle of this process had run the risk of disrupting the process."
Macellum has persistently kept the pressure on Kohl's board for months, pushing for the retailer to sell after receiving offers from several bidders. Kohl's sought the assistance of bankers from Goldman Sachs (NYSE: GS) earlier this year to consult with potential buyers, though as of yet, the company hasn't announced its intent to follow through on any offers. Alternatively, Kohl's may pivot towards the current board's previously stated goal of transforming into an "active and casual" clothing retailer with streamlined stores.
Kohl's bid to reinvent itself would likely put it into conflict with established names in the industry, such as Lululemon (NASDAQ: LULU), which casts doubt on the company's rosy projections of potential success from any possible "facelift." While Kohl's could undoubtedly carve out a niche in the active and casual market, it will face stiff competition in an increasingly crowded market.
Kohl's shares didn't seem to respond to the news, continuing a downward trend that began earlier in May. Stocks of the clothing retailer slid 5.5% on Wednesday and an additional 0.30% on Thursday by 2 p.m.