The Board of Directors of US-based omnichannel retailer Kohl’s has confirmed that it has received preliminary offers from multiple parties interested in acquiring the company.
Kohl’s said in a statement that the proposals it has received are non-binding and without committed financing.
Last week, Canadian department store Hudson’s Bay reportedly considered a bid for Kohl’s.
US-based private equity firm Sycamore Partners is also understood to be preparing a bid for the retailer.
Kohl’s said: “The Board acknowledged receipt of multiple preliminary indications of interest. The proposals received are non-binding and without committed financing.
“The Board has authorised Goldman Sachs to coordinate with select bidders who have submitted indications of interest to assist with further due diligence so that they have the opportunity to refine and improve their proposals and include committed financing and binding documentation.”
Kohl’s operates a network of more than 1,100 stores across 49 states and has a digital presence through its website and mobile app.
The company’s Board of Directors designated its finance committee last month to review any expressions of interest.
The committee was formed pursuant to last year’s settlement agreement with Macellum Advisors and other shareholders. It is comprised exclusively of independent directors.
Earlier this month, Kohl’s reported that its full-year and fourth quarter (Q4) results for the fiscal year 2021 (FY21) grew by 21.8% and 5.8% respectively compared with the previous year.
The company delivered adjusted diluted earnings per share (EPS) of $7.33 for the year, while its operating margin was 8.6%, exceeding the company’s 2023 goal two years ahead of schedule.
For FY22, Kohl’s expects its net sales to increase by 2-3% and its operating margin to be in the range of 7.2% to 7.5%.
The company has also forecast EPS of between $7.00 and $7.50.