The Works Faces Boardroom Battle Amid Investor Dispute

Discount retailer The Works is embroiled in a shareholder dispute as activist investor Kelso seeks to place a representative on its board of directors. Kelso, which holds a 10% stake in the company, has nominated former Card Factory director Graeme Coulthard for a board position. However, The Works has formally objected to this nomination, citing Coulthard's 'limited experience' as a director of a listed company and expressing concern that his appointment could distract management.

Kelso has countered these objections, stating they are 'surprised and disappointed' by the retailer's stance. The investor group has described the board's assessment of Coulthard's experience as 'misleading.' Kelso argues that Coulthard's tenure on the board of Card Factory provides him with 'direct experience of multi-site value retail,' making him well-suited to contribute to The Works. They dismissed the company's concerns that Coulthard would 'undermine value creation' as 'absurd.'

Coulthard himself owns an 8% stake in The Works. The ongoing disagreement comes as The Works' chief executive, Gavin Peck, implements a turnaround strategy. This plan includes discontinuing online sales and focusing on products like books and toys that have shown popularity on social media.

The public disagreement has had an impact on the company's stock, with shares falling 5% following the news. Despite this recent dip, The Works' shares have seen a significant increase of approximately 150% over the past year. Analysts suggest the dispute is unlikely to be resolved quickly, potentially setting the stage for further conflict within the company's leadership.