Kohl’s could soon have a new owner. The stock is rocketing higher
By Nathaniel Meyersohn, CNN Business
Could the biggest department store marriage in years be in the works?
Hudson’s Bay Co., the Canadian department store and owner of Saks Fifth Avenue, is considering making a bid for Kohl’s, Axios reported Wednesday, citing sources.
The report drove Kohl’s stock up around 15% during mid-day trading Wednesday.
A spokesperson for Kohl’s said the company’s board of directors will assess any potential bids against its own reorganizing plans and “choose the path that it believes maximizes shareholder value.” Hudson’s Bay did not immediately respond to a request for comment.
Kohl’s is the largest US department store, with around 1,100 locations and $20 billion in annual sales. But the chain’s stock price has lagged rivals in recent years and sales have stagnated.
A target of several activist investors pressuring the company to make sweeping changes, Kohl’s is being urged to spin off its e-commerce business or find a buyer to take the whole chain private. Kohl’s said last week that it has engaged with more than 20 potential buyers, a sign of wide interest.
Kohl’s has so far rebuffed takeover offers, claiming they undervalue the company. During an investor day last week, the retailer announced new strategies to grow. Kohl’s will shift away from “a department store to a more focused lifestyle concept centered around the active and casual lifestyle,” said CEO Michelle Gass. But investors were unpersuaded.
The entry of Hudson’s Bay, which itself went private in 2020, would add a prominent suitor to the mix of retailers, investment banks and real estate companies making offers for Kohl’s. If Hudson’s Bay were to buy Kohl’s, it would link a luxury fashion chain with a value department store.
Hudson’s Bay, which bought Saks in 2013 and also owns Saks Off Fifth and real estate, is a smaller company than Kohl’s. In 2018, its last full financial year available publicly, sales totaled $9.4 billion.
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