Engine Capital Urges Kohl’s to Consider E-Commerce Separation

An activist investor is urging department-store chain Kohl’s Corp. to consider a sale of the company or a separation of its e-commerce business.

New York-based hedge fund Engine Capital LP wants the retailer to examine the two alternatives to improve its lagging stock price, according to a letter sent to Kohl’s board Sunday and viewed by The Wall Street Journal. Engine owns a roughly 1% Kohl’s stake.