Activist investor accuses The Works chair of working from home

An activist investor has criticized The Works' chair, Stephen Bellamy, for allegedly residing in New Zealand and participating in board meetings through video conference. Kelso, a London-listed investment fund, is attempting to install a director of its choosing on The Works' board. However, The Works has rejected this proposal, stating it would "undermine" its growth.

The activist investor has raised concerns about Bellamy's physical presence and engagement with the company, pointing to a Companies House filing indicating his residence as New Zealand. Bellamy was appointed as chair of The Works in 2024 following the departure of the previous chairperson. Kelso claims responsibility for Bellamy's appointment but disputes this, questioning his in-person attendance at board meetings.

The investor has been at odds with Bellamy over various issues, including shareholder buybacks and the appointment of joint brokers. Recently, Kelso sought to appoint Graeme Coulthard, a former Card Factory executive, as a director, but The Works opposes this move, citing concerns about Coulthard's qualifications. Kelso has called for shareholders to support its proposal, criticizing the board's resistance and lack of engagement with Coulthard.

The Works, a discount retailer selling stationery and crafts, is trying to reposition itself as a high-street retailer for "screen-free" entertainment for children. The group reported a 3.3% sales growth and £260 million in revenue for the first half of the year, with adjusted profit increasing by 44% to £7.2 million.