Key facts
- Activist investor Kelso is pushing to appoint Graeme Coulthard as a director at The Works.
- The Works warned the move could "create unnecessary distraction" and "risk derailing" its growth strategy.
- The retailer questioned Coulthard's expertise, citing limited experience as a director of a listed company and in multi-site value retail.
- Kelso countered that Coulthard has significant experience from his time as a director at Card Factory.
- Kelso holds a 10% stake in The Works, making it the retailer's third-largest shareholder.
- The Works' shares fell over 5% to 88p following the retailer's criticism of Kelso's proposal.
The discount retailer The Works is facing a boardroom battle as activist investor Kelso seeks to appoint Graeme Coulthard, a retired private equity partner, to its board. The Works has urged shareholders to block the move, warning it could create "unnecessary distraction" and "risk derailing" its growth strategy and long-term value creation.
Kelso, which holds a 10% stake in The Works, has criticized the retailer's claims as "absurd" and "misleading." The Works argued that Coulthard has limited experience as a director of a listed company and no executive experience in multi-site value retail operations. However, Kelso pointed to Coulthard's experience as a director of Card Factory between 2010 and 2015, where he helped create significant value.
Kelso has demanded shareholders appoint Coulthard at the upcoming annual general meeting. The retailer's shares fell by more than 5% to 88p on Thursday after it published its criticism of Kelso's proposal. This is not the first time Kelso has sought influence; in 2024, Goold and finance chief Mark Kirkland gained board seats, and they pushed for the removal of the then-chair and the appointment of Stephen Bellamy.
Under chief executive Gavin Peck, The Works has been attempting to rebrand itself beyond a "pile 'em high, sell 'em cheap" image, focusing on screen-free entertainment for children. The retailer reported 3.3% sales growth and £260m in revenue for the year to May, with adjusted profit up 44% to £7.2m. Kelso is understood to be supportive of Peck's leadership strategy.