Activist investor accuses The Works of unfairly swaying crucial vote
The activist investor seeking to tighten its grip on The Works has accused the retailer’s board of attempting to sway a crucial shareholder vote. Kelso, a London-listed activist investor, has been locked in a weeks-long row with the arts and craft retailer, as it attempted to convince shareholders to appoint a former Card Factory executive [...]
An activist investor has accused The Works' board of attempting to influence a critical shareholder vote, claiming the retailer's management used its Employee Benefit Trust (EBT) to sway the outcome. Kelso, a London-listed activist investor, has been in a dispute with the arts and craft retailer over a board seat for former Card Factory executive Graeme Coulthard.
The Works refused to meet with Coulthard and warned shareholders that his presence on the board would "derail" their strategy. The vote in Coulthard's favor fell short, with 48.4% of shares against and 51.6% in favor of maintaining the status quo. Kelso's CEO, John Goold, expressed astonishment at the board's decision, stating that the EBT should not have a say in crucial votes and criticizing the board's "aggressive reaction" to his efforts.
The Works defended its board's actions, noting that only a small number of shareholders voted for Coulthard and that the board's decision was based on their recommendations.
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