Kohls has entered into exclusive negotiations with retail holding company Franchise Group, which is looking to purchase the retailer at a price of $60 per share, valuing the retailer at approximately $8 billion..

When the market closed, shares of Kohls were trading at $42.12, valuing the company at about 5.4 billion.

Franchise Group, which owns the Vitamin Shoppe and Buddy’s Home Furnishings, among other brands, has partnered with Oak Street Real Estate Capital, which is looking to finance the buyout through real estate, according to an anonymous source.

Both companies’ boards of directors will need to approve the deal, Kohls said in a press release, noting there is no guarantee the deal will go through.

The exclusive period will last for three weeks. It will allow the Franchise Group and its partners to do due diligence, and arrange financing, as well as complete the negotiations and finalize the deal.

Kohls has been looking for a buyer since December of 2021, when a New York based hedge fund, Engine Capital, told the retailer it should seek a sale  to boost its stock price. Shares at the time were trading at $48.45.

Activist hedge fund Macellum Advisors joined the chorus in mid-January, demanding a sale due to executives, “materially mismanaging” the retailer.

By February the retailer had brought Goldman Sachs and PJT partners into the fold to assist in fielding offers for the company.

Sales had fallen at the retailer recently, with sales for the three month period ending April 30th at $3.72 billion, down from 3.89 billion in 2021. The company was also forced to revise its profit and revenue forecast downward, complicating the search for a buyer, and leaving investors disappointed after the stock had reached a 52-week high of $64.38 in late January.

Photo of Kohl’s courtesy of Wikipedia.