Kohl’s Corp. said it would start paying a dividend and buying back shares again after a group of activist investors pushed to take control of the company’s board.
The department-store chain on Tuesday said its board approved a cash payout last month of 25 cents a share. For its new fiscal year, the company said it plans to spend at least $200 million on stock buybacks.
Kohl’s moved to conserve cash when the Covid-19 pandemic was first intensifying in 2020. The company, like other retailers that weren’t considered essential businesses, temporarily closed down its stores last year.
Kohl’s is facing pressure from a group of shareholders that includes Macellum Advisors GP LLC, Ancora Holdings Inc. and Legion Partners Asset Management LLC, as well as 4010 Capital LLC, The Wall Street Journal reported in February. Those investors had built a 9.5% combined stake in the company and nominated nine people to the company’s 12-person board, the Journal said.
They want the company to add directors with retail experience, consider a sale-leaseback of some of its real estate holdings and reduce inventories, among other changes.
