Saks Fifth Avenue owner likely favorite in Kohl’s bid: source

Canadian department store chain Hudson’s Bay Co. is likely the frontrunner in a bidding war for budget department store Kohl’s, a source familiar with the matter told The Post.

Kohl’s has received “multiple” expressions of interest to acquire the chain, the company announced Monday.

The proposals, which were submitted on March 16, were “non-binding” and did not include funding commitments, the Menomonie, Wis.-based retailer said.

Toronto-based HBC, which owns Saks Fifth Avenue and the Hudson’s Bay Company, could bring Kohl’s to Canada. Other interested parties would be private equity firms Sycamore Partners and Leonard Green Partners.

All three declined to comment to the Post about an interest in Kohl’s.

Kohl’s stepped in, tapping Goldman Sachs to lead a potential sale process, after activist investors Macellum and Engine Capital urged the company to put itself up for sale and reorganize its board, arguing that the company was underperforming.

Canadian department store Hudson’s Bay is among the bidders for Kohl’s.

Kohl rejected two takeover offers earlier this year, including one from Sycamore, then implemented a so-called “poison pill” to fend off a hostile takeover.

In a letter to shareholders on Monday addressing the offers and an effort by Macellum to reinstate its board, Kohl’s said, “To ensure that we maximize shareholder value, your board is considering alternatives through intentional and ongoing dialogue 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 available to Kohl’s.

The company will likely make a decision on the current deals at its May 11 annual meeting, a source familiar with the process told The Post.

Shares of Kohl were down less than 1% at $62 on Monday.

New York Post

Not all news on the site expresses the point of view of the site, but we transmit this news automatically and translate it through programmatic technology on the site and not from a human editor.
Back to top button