MN Kohl stores to be acquired by competitor: report
MINNEAPOLIS — Department store giant Kohl’s has been offered an acquisition deal by rival JCPenney for a whopping $8.6 billion, according to a New York Post report.
Simon Property and Brookfield Asset Management, which both helped JCPenney emerge from bankruptcy in 2020, reportedly offered $68 per share to acquire the Wisconsin-based retailer.
The JCPenney and Kohl brands will remain separate, a source told The Post, with plans to streamline operations, merge IT systems and cut costs. All private clothing should be made by the same brand, depending on the outlet.
The bidders aim to reduce costs by $1 billion over the next three years, according to the report.
If completed, the sale would negate plans to integrate more Sephora locations into Kohl stores. It’s not immediately clear what the fate of existing Sephora counters in Minnesota will be.
The partnership with the beauty brand, which aimed to “attract new, younger customers” to Kohl’s department stores, began in 2020, with the two companies planning to open 12 more Garden State beauty counters this year. 850 Sephora stores inside Kohl stores are expected to open by 2023.
Other interested bidders have included Saks Fifth Avenue parent company Hudson’s Bay, as well as private equity firms Sycamore Partners and Leonard Green & Partners, according to the New York Post.
Goldman Sachs was reportedly introduced to facilitate the potential sale process, according to the report.
There are 28 Kohl locations in Minnesota, compared to about a dozen JCPenney stores in the state.