Kohl’s is discussing exclusive sales with the franchise group
Kohls said Monday that it has entered into special negotiations with retailer holding company Franchise Group, which is proposing to buy the retailer at $ 60 per share.
With such a price tag, Kohl would be worth about $ 8 billion.
Shares of Kohl closed at $ 42.12 on Monday, bringing the retailer’s market value to about $ 5.4 billion.
The franchisee group is working with Oak Street Real Estate Capital to finance deals primarily through real estate, said a person familiar with the matter. As the deal was not finalized, the man requested anonymity.
A representative of Oak Street Real Estate declined to comment.
The deal will be approved by the board of directors of both companies, Kohl said in a statement. There is no guarantee that any agreement will be reached, it said.
The three-week unique period will allow the franchise group – which owns Vitamin Shop and Buddy’s Home Furnishings, among other brands – and its financing partners to work hard and finalize the financing arrangements and the parties to negotiate binding documents, Kohl said.
The retailer added that no comment will be made until the agreement is reached or the discussion is concluded.
Kohl’s saga has been playing for more than half a year.
The off-mall department store chain was urged by New York-based hedge fund Engine Capital to consider a sale or other option to raise the stock price in early December 2021. At the time, Kohl’s shares were trading at around $ 48.45.
In mid-January, activist hedge fund Masselm Advisors then pressured Kohl to consider selling. Jonathan Duskin, CEO of Massellam, argued that the authorities were “physically mismanaging” the business. He also said that there is a lot of potential left to unlock with Kohl’s real estate.
In early February, Kohls said he had brought in bankers from Goldman Sachs and PJT Partners to help with the retailer’s field offer.
Last month, Kohl’s reported that sales for the three-month period ended April 30 rose to $ 3.72 billion from $ 3.89 billion in 2021. The company slashed its profit and revenue forecasts for the entire financial year, disappointing investors and tarnishing the picture. Possible agreement.
Shares of Kohl hit a 52-week high of .3 64.38 at the end of January.