Activist hedge fund Macellum Advisors GP said on Tuesday that if Kohl's does not improve its business to enhance its stock price, it should consider strategic options, including a sale.

The campaign comes months after the department store chain secured an agreement with a group of activist investors, including Macellum, to add two of the group's nominees to the board of directors as independent directors.

Kohl's stock price has dropped more than 20% since the deal was struck in April 2021, according to Macellum, who added that the company had spent another year "materially mismanaging the business."

Unless Kohl's agrees to engage with it to execute specific changes, the investor said it expected to nominate a slate of board candidates at a shareholders meeting this year, confirming a December report from major newswire.Kohl's And Target: Product-Based Vs. Solution-Based Retailing

According to Macellum, Kohl's can improve its balance sheet by monetizing $4 billion in real estate and returning the money to shareholders through a stock buyback, which could lift the company's price to $100 per share.

Kohl's stock increased almost 2% in premarket trading on Tuesday, closing at $47.77.

A request for comment from a major newswire was not responded to.

Macellum, which owns roughly 5% of Kohl's common stock, has influenced adjustments at Bed Bath & Beyond and Big Lots.

Last year, the New York-based hedge fund Engine Capital LP proposed that Kohl's consider selling the company or splitting off its e-commerce segment.