Kohl’s says it has received multiple preliminary buyout offers

Department store chain Kohl’s could soon be in the possession of a new owner as the company receives multiple buyout offers.

Department store chain Kohl’s announced on Monday that it had received multiple preliminary offers from entities interested in acquiring the department store chain.

According to the company, the proposals it has received so far are nonbinding and without committed financing. As a result, the board has hired bankers from Goldman Sachs to handle the bidders.

A source close to the matter told CNBC earlier today that Hudson’s Bay Co., a Canadian department store operator owned by HBC, is amongst the bidders. Furthermore, private equity firm Sycamore values Kohl’s at $9 billion and plans to bid for the department store.

Kohl’s market value currently stands at around $7.9 billion. The interest in the department store chain comes after Kohl’s rejected an offer from Starboard-backed Acacia Research, at $64 per share. At the time, Kohl’s said the offer by Acacia Research was too low. 

The department store chain is planning to boost its performance over the coming months and has introduced a few initiatives. Earlier this month, Kohl’s issued new long-term financial targets for its business, which also includes growing sales by a low single-digit percentage annually.

The company’s stock price has performed excellently since the start of the year despite the take-over talks. At press time, KSS is trading at $62.01 per share, up by more than 25% since the start of the year.

Kohl’s has outperformed other giants in the retail sector, including Walmart, which is down by less than 1% since the start of the year. Online retail giant Amazon has also lost more than 5% year-to-date.

Kohl’s has come under pressure since the start of the year as hedge fund Macellum Advisors called for the department store to be sold. According to Macellum, Kohl’s has been underperforming compared to the other retail giants in recent years.