Stocks● Neutral
The Works board battle escalates as Kelso slams 'absurd' claims
Activist Kelso, holding 18% combined with Coulthard, escalates row over board seat at The Works, calling retailer's arguments 'misleading'. AGM vote set for Sept 7.
Continue with
The activist investor pushing for a board seat at The Works has fired back at the retailer's arguments against the appointment, calling some of them "misleading" and the suggestion that its nominee could destroy value "absurd".
Kelso Group, which owns 10% of the retailer, is backing former private equity executive Graeme Coulthard for a director role at the company's AGM on 7 September. Coulthard separately holds an 8% stake, giving the pair roughly 18% of the shareholder base.
The Works' board unanimously urged shareholders last week to reject the proposal, arguing Coulthard's presence could distract management from its growth strategy and weaken the independence of the board. Independent non-executives would no longer hold a majority if Coulthard were appointed, the company said.
Kelso challenged that logic directly. The activist said Coulthard's 19 years as a partner at Charterhouse and his board role at Card Factory through its store expansion and 2014 flotation gave him exactly the multi-site retail experience The Works claimed he lacked. Kelso called the proposed appointment a "modest and reasonable" request given the combined shareholding.