Franchise Group Inc, owner and operator of retail stores such as The Vitamin Shoppe and Buddy's Home Furnishings, has entered the race for Kohl's Corp with a $9 billion indicative offer, three people familiar with the matter said.
Franchise Group's bid is not the highest offer, however. Luxury department store operator Hudson's Bay Company has indicated it is willing to pay at least $70 per share for Kohl's, the sources said. Kohl's shares ended trading on Monday at $57.24.Still, Franchise Group's entry in the process gives Kohl's more options as it explores a sale under pressure from activist hedge funds.
A consortium backed by private equity firm Leonard Green & Partners LP, which includes Authentic Brands, has also made a bid for Kohl's, the sources said. Representatives for Franchise Group, Hudson's Bay, Leonard Green, Sycamore and Acacia did not respond to requests for comment.Kohl's, which operates more than 1,100 stores in the United States, is fighting to fend off a board challenge even as it considers selling itself. Hedge fund Macellum Advisors GP in February nominated 10 directors to the company's 14-member board, arguing it has not done enough to improve its business and that it should sell itself.