US department store chain Kohl’s Corporation has confirmed it has received “multiple” preliminary indications of interest, further pushing the possibility of a buyout for the company.
In a press release, Kohl’s said the proposals were non-binding and without committed financing.
Goldman Sachs has been authorised by the board to coordinate with selected bidders who have submitted their interest and to carry out further due diligence so that proposals can be refined if necessary.
Back in February 2022, it was announced the finance committee of the Kohl’s board would be leading reviews.
The possibility of a sale came about after the company’s activist investors, Macellum and Engine Capital, pushed for a sale and requested a revamp of its board after they said it was underperforming.
In a letter to its shareholders, Kohl’s also noted that Macellum was looking to “take control” of the board, which it has said is “unjustified” and “highly concerning given Macellum’s intentions to engineer short-term financial actions that could damage the long-term future of the company”.
The company also said: “To ensure we are maximising shareholder value, your board is reviewing alternatives through an intentional and ongoing dialog with potential bidders. This process is robust and will be measured against the value creation potential of our compelling standalone plan. Regardless of the outcome of this process, we are excited about the many opportunities ahead for Kohl’s.”
According to the New York Post, Saks Fifth Avenue owner Hudson’s Bay Co. is reportedly in the front-running for a takeover bid for the budget department store.
Other interested parties are said to be Sycamore Partners and Leonard Green Partners.