NoDerog
Nordstrom (New York Stock Exchange: JWN) shot up more than 30% in hours after trading a report that activist investor Ryan Cohen has taken a large stake in the department store chain and wants board changes.
Cohen is said to be one of the top five non-family owners of the retailer, according to a wsj report, which quotes well-known people. Cohen wants to replace at least one director and is focusing on the former Bed Bath & Beyond (BBBY) CEO Mark Tritton, whom the activist believes is in conflict.
Cohen, president of GameStop (GME) and founder of online pet retailer Chewy (CHWY), wants to engage with Nordstrom management on a board change that could help with some cost-cutting efforts, according to the report.
Cohen has gained fame in recent years, especially for his involvement with GameStop, specifically among meme stock traders. News of Cohen’s stake in Bed Bath & Beyond (BBBY) in March originally sent his shares up 34% on March 6 and the revelation that he had exited his stake sent shares tumbling 41% on March 6. August 19.
“While Mr. Cohen has not sought discussion with us in several years, we are open to hearing his views, as we do with all Nordstrom shareholders,” a Nordstrom (JWN) spokeswoman said in a statement to the WSJ. . “We will continue to take actions that we believe are in the best interest of the company and our shareholders.”
Tritton was succeeded as CEO of Bed Bath & Beyond (BBBY) at the end of June. Prior to his roles at Bed Bath and director of marketing at Target, he worked for Nordstrom from 2009 to 2016.
Cohen’s (JWN) involvement comes after the luxury department store chain adopted a “poison pill” in September to deter a potential acquisition. The new plan followed a 13G filing by Mexico City-based retailer Port of Liverpool that revealed the company has a 9.9% stake in Nordstrom (JWN).
In 2017, the Nordstrom family (JWN) abandoned a plan to take the company private, and in March 2018, Nordstrom’s board special committee broke off discussions with the Nordstrom family for a $50-per-share acquisition.
Cohen’s stake in Nordstrom (JWN) also follows after the WSJ reported earlier this month that Cohen amassed a stake worth hundreds of millions of dollars in Alibaba Group (BABA) and wants the company to seek more buybacks from Actions.