The Works activist investor hits back at retailer's 'absurd' claims
Activist fund Kelso is refusing to back down from its bid to place former private‑equity partner Graeme Coulthard on the board of UK discount retailer The Works, a clash that could reverberate with Canadian investors monitoring boardroom battles.
Kelso argues that the retailer's warning that the appointment would distract the board and derail growth is misleading, noting Coulthard's track record as a director at Card Factory from 2010 to 2015 where he helped generate significant value for Charterhouse Capital Partners.
The Works' board, represented by chief executive John Goold, says Coulthard lacks direct experience in multi‑site value retailing and has no executive background in that segment, suggesting the move would undermine long‑term value creation.
Kelso counters that Coulthard's experience at Card Factory directly relates to the retailer's strategy and that the board's claim is absurd, insisting shareholders should vote for his appointment at the upcoming AGM.
Kelso already holds a 10 per cent stake in The Works, making it the third‑largest shareholder, and has previously pushed for board changes in 2024 that led to the removal of the former chair and the appointment of Stephen Bellamy before Kelso's finance chief stepped down.
Following the board's broadside, The Works' shares slipped more than five per cent to 88p. The retailer reported 3.3 per cent sales growth and £260 million revenue to May, with adjusted profit up 44 per cent under chief executive Gavin Peck, who is steering the brand toward screen‑free entertainment for children.
For Canadian investors, the dispute highlights how activist campaigns in the UK can influence valuation and governance debates in comparable retail sectors at home, where board composition and strategic direction are also under heightened scrutiny.
Reporting for CityAM Canada on business and the wider Canadian economy.
Electric vehicle sales targets for British carmakers could be watered down after ministers launched a fresh review amid growing pressure from manufacturers and dealerships. The government said it was seeking the opinions of auto makers, suppliers and charging point providers on whether to loosen the ambitious plans to phase out sales of petrol and hybrid […]