WA Kohl's Stores Face Possible New Ownership

WASHINGTON - Nearly two dozen Kohl's stores across Washington could soon be under new ownership pending final approvals in a multibillion-dollar deal. The retailer currently operates 20 locations in the Evergreen State, including in Redmond, Puyallup and Gig Harbor.

Kohl's has entered into exclusive negotiations with Vitamin Shoppe owner Franchise Group, Inc. for a three-week period relating to the fate of the department store chain. Franchise Group is seeking to acquire Kohl's for $60 per share, a move that would value Kohl's at around $8 billion.

The acquisition talks come as the future of the Kohl's brand remains undecided after a New York-based hedge fund Engine Capital urged Kohls in December 2021 to consider a sale, according to CNBC. Simon Property and Brookfield Asset Management, both of which aided JCPenney out of bankruptcy in 2020, previously offered $68 a share to acquire the Wisconsin-based retailer, according to the New York Post.

Under the Simon Property deal, the JCPenney and Kohl's brands would have remained separate, a source told The Post. The two department store giants also had plans to streamline operations, merge IT systems and slash costs. All private apparel is set to be manufactured by the same label, according to the outlet.

The sale also would've nix plans to bring more Sephora locations inside Kohl's stores. The partnership with the beauty brand, which aimed to "draw new and younger customers" to Kohl's department stores, began in 2020, with the two companies planning for 12 more Garden State beauty counters opening this year. 850 Sephora stores inside Kohl's stores are planned to open by 2023. It's not immediately clear if the partnership would continue under Franchise Group ownership.

Franchise Group has partnered with Oak Street Real Estate Capital to finance the deal, CNBC reported. The Franchise Group deal is subject to approval of both companies' boards of directors, Kohl's said, adding that there isn't a guarantee that an agreement will be reached in the three-week period.