Kohl’s confirms interest from several buyers “without commitment of financing”

Kohl’s headquarters in Menomonee Falls.

Based in Menomonee Falls Kohls Corp. Monday morning posted an update on its ongoing review of potential selling opportunities.

The retailer acknowledged having received “multiple preliminary signs of interest”. These proposals are non-binding and without committed funding, according to a press release.

The update comes a month after Kohl rejected two purchase offers – from Acacia Research Corp. for $64 per share and Sycamore Partners for $65 per share – looking for better opportunities. The company also adopted a “poison pill” to avoid a future hostile takeover, while allowing the board to consider qualified offers.

The refusal was despite mounting pressure by an activist investor Macellum Capital Management to improve performance or consider a full sale of the business, and Kohl’s has repeatedly stated that it is committed to doing so, after calling on its finance committee to conduct an open review of potential sale opportunities. and retained Goldman Sachs to engage with interested parties.

In its preliminary proxy statement filed earlier this month, Kohl’s says he has been in talks with about twenty potential buyers since January.

“The board of directors has authorized Goldman Sachs to coordinate with certain bidders who have submitted expressions of interest to assist them in additional due diligence so that they have the opportunity to refine and improve their proposals and ‘include committed funding and binding documentation,’ the company said Monday.

Last week, Axios reported this canadian department store Hudson Baythe parent company of Saks Fifth Avenue, is reportedly considering an offer for Kohl’s.

Kohl’s stock, which had risen from $40 to over $63 when the offers were announced in January, fell from the high range to the low $50 range after Kohl’s Investor Day on March 7, during which Kohl executives provided updates on the company’s turnaround strategy, including plans open 100 smaller-format stores and grow its partnership with Sephora to $2 billion. Kohl’s also said its earnings per share would increase by a mid-to-high figure and authorized a $3 billion share buyback program.

Shares jumped back into the $60s after the Axios report and have since been flat, opening Monday at $63.

Comments are closed.