Kohl’s says two high executives are leaving, as firm seeks purchaser

Kohl’s stated Wednesday that it’s shedding two of its high executives, because the retailer searches for a possible purchaser amid strain from activists to promote the enterprise.

Doug Howe, Kohl’s chief merchandising officer, is departing instantly, the retailer stated in a securities submitting. Greg Revelle, chief advertising officer, is predicted to depart June 1.

Kohl’s shares fell greater than 4% in prolonged buying and selling.

The corporate stated Howe and Revelle have been leaving to pursue alternatives elsewhere.

“A seek for the replacements is already underway,” Kohl’s stated. “Within the meantime, we’ve a deep bench of selling and merchandising expertise that can make sure the continued execution of our methods.”

The submitting comes the night time earlier than Kohl’s is about to report its fiscal first-quarter earnings forward of the market open on Thursday.

The report will likely be broadly watched, for quite a few causes. For one, Kohl’s has been going through ample strain from activist buyers in current months to overtake its board of administrators and to discover a new purchaser.

Simply final week, Kohl’s shareholders voted to reelect the company’s current slate of 13 board directors, trumping Macellum Advisors’ proposal for a brand new slate of individuals. However Macellum responded that it’ll nonetheless be holding Kohl’s accountable for its selections within the months forward. Mainly, the activist agency needs the retailer to discover a new purchaser, arguing that present Kohl’s Chief Government Officer Michelle Gass hasn’t accomplished sufficient to develop gross sales.

Kohl’s has been working with bankers at Goldman Sachs to judge bids. Earlier this 12 months, it rejected a proposal from Starboard-backed Acacia Analysis, at $64 per share, that was deemed to be too low. 

Kohl’s shares closed Wednesday down 11% at $43.13.