Kohl's Enters Ownership Talk With Vitamin Shoppe Owner

WISCONSIN — Kohl's is in exclusive talks with Vitamin Shoppe's owner, which could reshape all of its stores in Wisconsin and across the U.S.

The brand started exclusive negotiations with Vitamin Shoppe owner Franchise Group, Inc., for a three week period to determine the department chain's chain. Franchise Group wants to Kohl's for $60 per share, which would value Kohl's around $8 billion.

Before the acquisition, Kohl's future was undecided after New York-based hedge fund Engine Capital urged the brand to consider a sale in December 2021, CNBC reported.

Simon Property and Brookfield Asset Management, both of which aided JCPenney out of bankruptcy in 2020, previously offered $68 a share to acquire the Menomonee Falls-based retailer, the New York Post reported.

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 have nixed 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.

Nicole Rosenthal, Patch staff, contributed to this report.