Kelso hits back as The Works rejects appointment of Graeme Coulthard

14th Aug 2026 10:28

(Sharecast News) - The Works shareholder Kelso Group hit back on Friday after the retailer urged shareholders not accept its attempt to appoint Graeme Coulthard as director at the upcoming annual meeting.

The Works said on Thursday that it had received a notice from Kelso, which owns a stake of around 10%, proposing that Coulthard be appointed as a director with immediate effect.

The company said it had written to Kelso arguing that his appointment would not be in the best interests of The Works or its stakeholders and would be "more likely to undermine, rather than enhance, long-term value creation". The Works requested that Kelso withdraw its request but the latter subsequently confirmed it remained intent on proceeding with the resolution.

"The proposed appointment would, in the board's view, create unnecessary distraction, risk derailing delivery of the group's focused growth strategy, create an imbalance in governance and potentially result in particular shareholder interests being prioritised over those of the broader shareholder base, with a consequent risk of value destruction," The Works said.

It also argued that Coulthard has limited experience as a director of a listed company and no executive experience in multi-site value retail operations.

Kelso hit back on Friday, urging investors to vote in favour of the resolution and saying that it was "surprised and disappointed by the strength" of The Works' response.

It said the board's description of Coulthard as having no executive experience in multi-site value retail operations is "misleading and reflects poorly on the independent directors". It noted that Coulthard joined the Card Factory board in 2010 when he acquired the business for Charterhouse Capital Partners and served for five years "through a period of rapid store roll-out, strong profit growth and a successful flotation in 2014 generating an over 5 fold return on investment".

"Mr Coulthard remained as a director for a year after flotation," Kelso said. "That is direct experience of multi-site value retail, the segment in which The Works operates, and the business in which Gavin Peck, The Works' Chief Executive, built his career. Kelso values that experience in Mr Coulthard as it does in Mr Peck."

Dan Coatsworth, head of markets at AJ Bell, said: "Kelso is an activist investor in all but name. It says it looks to unlock trapped value in UK-listed companies by pushing through change.

"The Works launched a new growth strategy last year and recently decided to scrap its digital channel to focus purely on the high street. The shares have already increased by more than 150% year-to-date versus 8% from the FTSE All-Share UK stock market benchmark.

"That makes it even more interesting as to why Kelso is pushing hard now, when easy money has already been made from the recovery story."

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