Ancora Sends Letter to the Board of Directors of Kohl’s Regarding the Need for a New Chairman and Chief Executive Officer with Turnaround Experience

Believes the Company’s Botched Strategic Review, Credit Downgrade, Dramatic Decline in Sales, Elevated Costs and Poorly Received Standalone Plan Have Placed Kohl’s on a Dangerous Trajectory – With Share Price Down 45% Over the Past Year

Contends the Board’s Actions Have Created an Environment in Which CEO Michelle Gass is No Longer Ideally Suited to Lead Kohl’s to Long-Term Value Creation

Urges the Board to Appoint a New Chairman and Announce a CEO Succession Plan That Accounts for Interviewing a Diverse Group of Qualified Candidates with Experience Turning Around Retailers

CLEVELAND--()--Ancora Holdings Group, LLC today announced that it has sent the below letter to the Board of Directors of Kohl’s Corporation (NYSE: KSS).


September 22, 2022

Kohl’s Corporation
N56 W17000 Ridgewood Drive
Menomonee Falls, WI 53051
Attn: The Board of Directors

Members of the Board of Directors,

Ancora Holdings Group, LLC (together with its affiliates, “Ancora” or “we”) is a long-term shareholder of Kohl’s Corporation (“Kohl’s” or the “Company”), with a beneficial ownership position of approximately 2.5% of the Company’s outstanding shares. Since collaborating with you on an incremental refresh of the Board of Directors (the “Board”) in early 2021, we have spent nearly 18 months privately engaging with leadership to share recommendations for reversing the Company’s sustained underperformance and unlocking value for long-suffering shareholders. We thoughtfully withheld public critiques during this period to provide Kohl’s time to bounce back from the COVID-19 pandemic, conduct a productive review of strategic alternatives and produce a viable standalone plan that investors could rally behind. Much to our disappointment, Kohl’s has failed to deliver on each of these critical priorities under Chairman Peter Boneparth (who has been a director for nearly 15 years) and Chief Executive Officer Michelle Gass (who has been a c-level leader for nearly a decade).

If the Boneparth-led Board remains firmly committed to its preferred standalone path, we contend that Kohl’s needs new leadership with demonstrated experience in cost containment, margin expansion, product catalog optimization and, most importantly, turnarounds. We appreciate that Chairman Boneparth has allowed us to share private feedback with him in recent months. We also want to underscore that Michelle Gass, the Company’s current Chief Executive Officer, is a talented leader who deserves credit for establishing an innovative partnership with Sephora USA, Inc. and holding the organization together during the pandemic. We have been proud to invest in a business that maintains strong gender diversity in the c-suite, as it aligns with our recognized focus on installing female leaders in more corporate boardrooms.1 However, our view regarding the need for new leadership at Kohl’s is simply based on the facts.

During the Boneparth era, the Board has created an environment in which Ms. Gass is no longer well-positioned to lead. The Board’s decisions to reject multiple indications of interest in the $64-$65 per share range in the winter and then proceed with an opaque strategic review throughout the spring – as financing markets gradually deteriorated – have destroyed billions of dollars in equity value and painted the Company into a corner. With a failed review of alternatives and recent credit downgrade now casting shadows over what is a shrinking business, we estimate that Kohl’s has begun to trade at a steep discount to its liquidation value. The onus is now on management to begin executing flawlessly against a backdrop that includes high inflation, intense competition and recessionary headwinds. Unfortunately, the facts indicate Kohl’s lacks the right leadership for the exceedingly challenging period ahead – one that will require the Company to reverse high-single-digit sales declines, contain capital expenditures and operating expenses, and immediately optimize fulfillment, marketing and merchandising.

It gives us no satisfaction to note that Kohl’s has produced negative total shareholder returns (“TSR”) over every relevant horizon:2




Since 2021

Since Gass
Appointment as








Although Kohl’s has cited the pandemic as a pretext for recent performance issues, this defense does not hold up. The fact is that Ms. Gass has been a c-level leader at Kohl’s since 2013 – and TSR is negative over that period as well. Additionally, as Kohl’s has languished coming out of the pandemic, many retail peers have recovered and seen their sales dramatically increase over the past 12-18 months.

As the Board hopefully takes time to assess our recommendation, we urge it to consider some other germane facts:

  • Kohl’s has had an unsettling level of c-suite turnover in recent quarters as sales have declined, indicating suboptimal personnel selection on the part of Ms. Gass. We are also dismayed that the Board chose to not disclose the recent departures of certain senior executives, including the Company’s Chief Merchandising Officer, until after the 2022 Annual Meeting of Shareholders (the “Annual Meeting”).
  • Kohl’s’ most recent strategic plan received a very poor reaction from the market when it was announced on March 7, 2022, suggesting that Ms. Gass is not commanding the trust of the investment community.
  • Kohl’s has recently failed to keep up with peers like Macy’s Inc. and Dillard’s Inc, with its net sales and same store sales declining as costs remain elevated. Similar to how it handled recent executive departures, the Board did not disclose a material financial miss prior to a critical shareholder vote at this year’s Annual Meeting. These disclosure decisions suggest to us – and presumably other shareholders – that the Board has been focused on maintaining control above all else.

We would also be remiss not to note that Mr. Boneparth and his fellow directors deemed it appropriate to award Ms. Gass nearly $60 million in compensation between fiscal year 2017 and fiscal year 2021, with her most recent fiscal year compensation being more than 1,000x that of the median employee’s compensation. We recognize that corporate leaders need to be compensated in line with market norms and their peers. Nonetheless, given that Kohl’s has produced years of poor returns and has started to shrink at an alarming rate, we do not support the Board continuing to expend shareholders’ capital on present leadership. Ms. Gass’ well-documented pedigree as a marketing and merchandising expert does not seem as pertinent right now given Kohl’s has pressing challenges related to its financial position, inventory levels and operations. Looking ahead, we believe shareholders’ capital should be utilized to compensate a new Chairman and Chief Executive Officer that possess operating expertise and turnaround pedigree.

In closing, we want to stress that a number of stakeholders are responsible for the abysmal performance and immense value destruction at Kohl’s. But the combination of the Boneparth-led Board’s ineffective leadership and management’s poor execution, as evidenced by the Company’s numbers, compel us to call for a new Chairman and Chief Executive Officer at this critical fork in the road. We urge the Board to announce a thoughtful succession plan and run a robust search process that accounts for interviewing a highly diverse group of qualified candidates. Ultimately, Kohl’s needs leadership that can design and implement a precise turnaround strategy to ensure the Company averts peril and starts producing enhanced value for shareholders over the long-term.


Frederick D. DiSanto

James Chadwick

Chairman and Chief Executive Officer


Ancora Holdings Group LLC

Ancora Alternatives LLC


About Ancora

Founded in 2003, Ancora Holdings Group, LLC offers integrated investment advisory, wealth management and retirement plan services to individuals and institutions across the United States. The firm's comprehensive service offering is complemented by a dedicated team that has the breadth of expertise and operational structure of a global institution, with the responsiveness and flexibility of a boutique firm. For more information about Ancora, please visit

Reuters, “Analysis: Elliott, Ancora lead hedge funds in pushing for more women on boards,” January 12, 2022.
2 TSR runs through September 16, 2022 and includes reinvested dividends. The “2021 Settlement” refers to the Company’s April 14, 2021 settlement with Ancora and other investors, while the “2017 Appointment” refers to the September 26, 2017 appointment of Ms. Gass as “CEO-elect” of Kohl’s and the “Boneparth Appointment” refers to the appointment of Mr. Boneparth to the Kohl’s Board on May 1, 2008.


Longacre Square Partners
Charlotte Kiaie / Miller Winston, 646-386-0091


Longacre Square Partners
Charlotte Kiaie / Miller Winston, 646-386-0091