Feb 2 (Reuters) – Activist investor Ryan Cohen is racking up a large stake in Nordstrom Inc (JWN.N) and plans to induce the department-store chain to make modifications to its board after a decline in share costs, the Wall Avenue Journal reported on Thursday, citing folks aware of the matter.
He’s seeking to interact with Nordstrom’s administration a couple of focused board refresh that he believes can help cost-cutting efforts as gross sales decline, WSJ stated, including that he is likely one of the top-five nonfamily shareholders of the corporate.
Cohen needs to interchange not less than one director at Nordstrom, with an eye fixed on former Mattress Bathtub & Past Inc (BBBY.O) Chief Mark Tritton, who chairs the compensation committee and whom Cohen views as conflicted and unqualified, the newspaper stated.
The billionaire investor believes it’s inappropriate for Tritton, who used to work at Nordstrom from 2009 to 2016, to be deciding compensation for Nordstrom relations who’re executives on the firm, as he used to work round them, in response to WSJ. Tritton has served as a director at Nordstrom since April 2020.
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Cohen has beforehand traveled to Seattle, the place Nordstrom is predicated, to fulfill with family members and be taught extra concerning the enterprise, WSJ stated.
Each Cohen and Nordstrom didn’t instantly reply to Reuters requests for remark.
The division retailer chain in September final yr adopted a “poison capsule” to forestall buyers from amassing 10% or extra of its shares, after Mexican division retailer chain Liverpool (LIVEPOLC1.MX) disclosed a 9.9% passive stake in Nordstrom.
Cohen additionally had a 9.8% stake in Mattress Bathtub & Past, which he offered in August, following a shocking rally within the inventory. He stood to earn a revenue earlier than taxes of between $55 million and $60 million on the sale, in response to a Reuters overview of regulatory filings and an individual aware of the matter.
Reporting by Juby Babu in Bengaluru; Modifying by Subhranshu Sahu and Christopher Cushing
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