Kohl’s might have its work cut out for them. 🙊 The department store chain is facing pressure from activist investor Engine Capital, who is encouraging the company to sell or spin off its e-commerce biz. The activist has accumulated a 1% stake in the company.
This situation echoes a similar one at Macy’s management involving Jana Partners back in October. 💡 Jana Partners suggested that spinning off Macy’s e-commerce business would help the company earn a more aggressive valuation, something we covered in the Oct. 14 edition of the Rip.
Similar to Jana’s suggestions, Engine Capital’s team argues that Kohl’s e-commerce business could be worth $12.4 billion as a stand-alone entity. Kohl’s currently has a market capitalization of $7.3 billion.
Engine Capital is not to be confused with Engine No. 1, an activist investor which famously took on Exxon Mobil with a scrappy stake and won three board seats. In fact, Engine Capital is actually suing Engine No. 1 over the name. The more you know. 🌈
$KSS gained 5.3% today.