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Nordstrom shares rose 30% in extended trading after reports that billionaire Ryan Cohen has taken a sizable stake in the department store.
The activist investor reportedly intends to press the chain to make board changes after a sharp drop in its share price, according to The Wall Street Journal.
Cohen is one of Nordstrom’s top five non-family shareholders and is known for sparking rallies in so-called meme stocks, including GameStop.
Cohen built his fortune as the founder of online pet retailer Chewy.
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This image shows a Nordstrom retail store in a suburban mall. (iStock-Nordstrom / iStock)
The investor is seeking a refresh on Nordstrom’s board of directors, which it believes can support efforts to cut costs amid declining sales, according to people familiar with the situation.
His goal is to replace at least one director, believed to be former Bed, Bath & Beyond CEO Mark Tritton, who chairs Nordstrom’s Compensation Committee.
Tritton worked for Nordstrom from 2009 to 2016.
Cohen thinks it’s inappropriate for Tritton to have a say in compensating Nordstrom family members because he used to work around them, people said.
Investor Ryan Cohen and Mark Tritton, former CEO of Bed, Bath & Beyond (FBN)
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“Although Mr. Cohen has not sought discussions with us for several years, we are open to hearing his views, as we do with all Nordstrom shareholders,” a Nordstrom spokeswoman said in a statement. “We will continue to take actions that we believe are in the best interests of the company and our shareholders.”
Cohen once had a large stake in Bed, Bath & Beyond and pushed for changes during Tritton’s tenure at the homewares retailer, which may soon file for bankruptcy.
Tritton was ousted by Bed, Bath & Beyond in June as sales began to fall.
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Shoppers enter the Nordstrom store on Michigan Avenue in Chicago. ((Photo by Scott Olson/Getty Images)/Getty Images)
When Cohen exited Bed, Bath & Beyond, he made about $60 million, according to a regulatory filing analysis.
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| ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| JWN | NORTH STREAM INC. | 21.15 | +1.18 | +5.91% |
According to its website, the company will release its fourth-quarter and full-year results on March 2.
