The Works braces for boardroom battle as activist investor pushes for more control
Discount retailer The Works has been engulfed in a boardroom drama as a notorious activist investor pushes to install a retired private equity partner as a director. The retailer, which sells toys and arts and crafts, warned on Thursday that the attempted coup could “create unnecessary distraction [and] risk derailing” the board’s growth strategy. Kelso, [...]
The discount retailer The Works finds itself embroiled in a boardroom battle as activist investor Kelso pushes for more control. The Works warned on Thursday that the attempt to install a retired private equity partner, Graeme Coulthard, as a director could "create unnecessary distraction [and] risk derailing" the board's growth strategy.
Kelso has vowed to proceed despite The Works' pleas to withdraw its request, pushing the proposal to be put before shareholders at the upcoming annual general meeting. The Works urged its investors to reject this power play, citing concerns that Coulthard's appointment would create a governance imbalance and potentially prioritize certain shareholder interests over the broader shareholder base, risking value destruction.
Coulthard, who owns eight percent of The Works, served as a partner at London-based private equity firm Charterhouse for 19 years but lacks experience in multi-site retail operations. The Works believes that its current board already possesses the necessary expertise, with Coulthard's background primarily in private equity investment rather than business operations.
Shares of The Works tumbled more than four percent to 89p following the retailer's criticism of the activist investor.
Written by urgent.news from City AM's reporting — not their text. Machine-written — it may contain errors, so check the original before relying on it.
