Kohl’s on Thursday received two offers to sell itself, according to a report in the Wall Street Journal.
Private-equity firm Sycamore Partners offered Kohl’s a deal priced in the mid-$50s per share and retail holding company Franchise Group made a bid at around around $60 per share, the report stated. Both of these offers fall below previously reported bids from both parties, in the wake of a disappointing earnings report from the struggling department store retailer.
FN has reached out to Kohl’s for a comment.
Sycamore had previously been cited as a potential buyer for Kohl’s and had expressed an interest in paying around $65 per share for Kohl’s, CNBC reported in February. Franchise Group, the owner and operator of retail chains including the The Vitamin Shoppe, Buddy’s Home Furnishings, and Pet Supplies Plus, reportedly placed a $9 billion offer to acquire the retail chain. As per a report, Franchise Group offered Kohl’s $69 per share to purchase the department store.
The Menomonee Falls, Wisconsin-based retailer reported a decrease in net sales and comparable sales in Q1. Net income came in flat compared to the same period last year at $14 million in the first quarter of 2022.
According to Morningstar analysts, Kohl’s could be hit with some store closures in the not-so-distant future as 10 of its property leases near expiration before fiscal year 2023.
Other interested parties have also reportedly entered bids for Kohl’s in recent months. In April, Simon Property and Brookfield Asset Management, the owners of department store chain JCPenney, reportedly made an offer to acquire Kohl’s at a deal valuing Kohl’s at more than $8.6 billion, or $68 per share.
HBC’s Hudson’s Bay Co., which owns Hudson’s Bay and Saks, also reportedly entered the race for Kohl’s in March with a bid of at least $70 per share, Reuters reported. Acacia Research also reportedly offered to pay about $64 a share for the department store chain.
In March, Kohl’s confirmed that it was weighing offers from multiple parties that were interested in purchasing the company. Macellum Advisors, which owns nearly 5% of shares at Kohl’s, has expressed skepticism about the future of the company and has asked Kohl’s to consider taking an offer to sell its business.