What: Vision One Management Partners, an activist hedge fund co-founded by former Canadian Prime Minister Stephen Harper, is pressuring Kohl’s to sell the company.

Why It Is Important: This move underscores the increasing influence of activist investors in the retail sector, particularly in department stores facing challenges in profitability and e-commerce growth. Kohl’s, with over 1,100 stores and a partnership with Sephora, is at a critical juncture as it struggles to enhance shopper engagement and sales. The push for a sale highlights the urgency for Kohl’s to reassess its strategy and operations to improve shareholder value.

Kohl’s, a major US department store chain, is facing pressure from Vision One Management Partners to sell the company. The activist hedge fund, led by Stephen Harper, has taken a stake in Kohl’s and is seeking a sale process and board representation. Kohl’s previously rejected a  USD $64 per share acquisition offer in 2022, hoping for a higher bid that did not materialize. Since then, the company's share price has significantly declined, and it has struggled with profitability and e-commerce expansion. This development follows a trend of department stores being targeted by investors for strategic changes or sales, as seen with Macy’s recent rejection of a takeover bid. Kohl’s, which also has a retail partnership with LVMH’s Sephora, is now under increased scrutiny from shareholders, including Vision One and other activist funds like Ancora Holdings and Macellum Capital Management, to revitalize its business and enhance shareholder returns.

Activist hedge fund urges Kohl’s to consider sale