Kohl’s Receives Multiple Preliminary Buyout Offers

Department store retail chain Kohl’s has confirmed this week that it has received multiple preliminary buyout offers from parties interested in acquiring the company.

The company said in a press release the proposals are non-binding and without committed financing. Kohls’ board of directors has hired bankers at Goldman Sachs to coordinate with bidders.

One of the bidders includes Hudson’s Bay Co., a Canadian department store operator owned by HBC, said a person familiar with the talks to CNBC.

Reports last week also said private equity firm Sycamore is mulling a bid, which would value the company at more than $9 billion.

On Monday, Kohl’s market value was roughly $8.1 billion.

Kohl’s recently said the company had received an offer from Starboard-backed Acacia Research, at $64 per share, and that it was too low.

The company since then had moved ahead with its own initiatives to boost profits and win new customers. Earlier this month, it issued fresh long-term financial targets for its business, including growing sales by a low single-digit percentage annually.

Activists including hedge fund Macellum Advisors has been pressuring for Kohl’s to consider selling itself as its share price lagged that of other big-box retailers. The firms argued Kohl’s could unlock more value from its real estate.

Macellum, which owns roughly 5% of Kohl’s stock, last month sought to take control of Kohl’s board by nominating 10 directors.

Kohl’s issued a separate letter to its shareholders earlier this week and said Macellum’s efforts were “unjustified and unwarranted and highly concerning.”

Ahead of its annual meeting set for May 11, the retailer is urging shareholders to vote for all of its board nominees.

Kohl’s shares are up about 26% year to date.

Disclaimer: We have no position in any of the companies mentioned and have not been compensated for this article.