The Works’ investor calls rejection of director appointment 'simply absurd'

Kelso, the investment firm, announced to markets today that it was “surprised and disappointed” by the board at The Works’ recommendation to block the appointment of Graeme Coulthard as a director at its forthcoming AGM. 

The Works warned earlier this week that the appointment could “create unnecessary distraction [and] risk derailing” the board’s growth strategy. 

Kelso said in a statement this morning: “The idea as set out in the board’s baseless comment that Mr Coulthard will undermine value creation rather than enhance it, in Kelso’s view, is simply absurd.”

“Kelso holds 10% of the voting rights of The Works. Mr Coulthard holds 8% and has been a disclosed major shareholder since August 2022, longer than any current non-executive director has served on the board.”

The investment firm also took aim at The Works’ description of Coulthard, who was a partner at London-based private equity firm Charterhouse for 19 years before his retirement in 2017, noting: “Kelso believes the board’s description of Mr Coulthard, as having “no executive experience in multi-site value retail operations”, is misleading and reflects poorly on the independent directors.

“Mr Coulthard joined the board of Card Factory 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 five-fold return on investment.

“Mr Coulthard remained as a director for a year after flotation. 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.”

Kelso said it supported directors buying shares in the companies that they serve, and Coulthard would act in the interests of all shareholders and is ready to complete The Works normal vetting process, describing the request for an additional board member as “modest and reasonable”. 

The Works has been contacted for comment.