© Reuters. FILE PHOTO: The exterior of a Nordstrom flagship store is seen during a media preview in New York, U.S., October 21, 2019. REUTERS/Shannon Stapleton/File Photo
By Svea Herbst-Bayliss
NEW YORK (Reuters) – Billionaire investor Ryan Cohen is building a big stake in Nordstrom Inc. (NYSE:) and plans to push the luxury retailer to change its board as its performance has lagged behind rivals, people familiar with the matter said Thursday.
Cohen, who built his fortune by co-founding online pet retailer Chewy (NYSE:) Inc and cementing it with investments in video game retailer GameStop (NYSE:) and Apple Inc (NASDAQ:), would like to replace at least one director. at Nordstrom. Board of 10 members, people said.
He appears to be taking aim at Mark Tritton, who chairs the compensation committee and has served as a director since 2020. Cohen has privately called Tritton, the former CEO of Bed Bath & Beyond (NASDAQ:), “conflicted and unqualified,” said the people, who were not allowed to discuss the private negotiations. Bed Bath & Beyond is preparing to file for bankruptcy, Reuters reported this week.
Investors applauded Cohen’s involvement in Nordstrom by sending the share price up 25% in after-close trading on Thursday.
Nordstrom’s shares have fallen about 55% in the past five years, and ratings agency Fitch downgraded the company again last month, saying its “operating track record has been weaker than most the retailers”.
The Wall Street Journal first reported on Cohen’s involvement with Nordstrom.
Cohen is now one of the company’s top five non-inside shareholders along with investment firms BlackRock (NYSE:) and Fidelity, people familiar with his involvement said.
Tritton was ousted as chief executive of Bed Bath & Beyond as part of a management shakeup in June, just months after Cohen took a stake in the home goods retailer and criticized it for an “overly ambitious” strategy. , for overpaying executives and failing to reverse market share losses.
As possible replacements on Nordstrom’s board of directors, Cohen has identified executives with experience in retail and e-commerce companies, the people said. Cohen would like to settle with the company without resorting to a power struggle, the people said.
The window to publicly nominate directors at Nordstrom closes on February 17, according to representation materials.
The 37-year-old Canadian-born Cohen has an estimated net worth of $2.5 billion. He made a splash in the investment world two years ago when he joined GameStop’s board of directors, sparking a stock price frenzy that turned the video retailer into a “meme stock” backed by retail investors. .
Nordstrom was founded by the Nordstrom family, and Insiders still own about 30% of the shares with brothers Erik and Peter serving as CEO and Chairman, respectively. They also have board seats. Cohen met with family members in Seattle, where the company is based, and expressed his admiration for the company’s customer service, the people said.
