Activist investor Kelso has rejected claims from discount retailer The Works that its move to appoint Graeme Coulthard to the board would undermine the company's growth strategy. Kelso, an AIM-listed investment firm, has criticised The Works for urging shareholders to block the appointment of the retired private equity partner.
John Goold, chief executive of Kelso, stated that the firm believes Graeme Coulthard would be a valuable addition to The Works' board and expressed disappointment with the board's reaction. The Works had warned on Thursday that the appointment could "create unnecessary distraction [and] risk derailing" its growth strategy, also raising concerns about Coulthard's experience.
Kelso has refused to withdraw its request and is demanding shareholders appoint Coulthard at the upcoming annual general meeting. Goold countered The Works' claims, citing Coulthard's experience as a director of Card Factory between 2010 and 2015. Coulthard, who owns eight per cent of The Works, previously served as a partner at Charterhouse for 19 years before retiring in 2017.
The Works' shares fell by more than five per cent on Thursday, closing at 88p, following the retailer's public opposition to the activist investor's proposal. In February, the retailer's share price had risen after Kelso increased its stake, describing The Works as "one of the most undervalued companies on the UK stock market."