Illinois Kohl's Stores Could Get New Owners

ILLINOIS — The 66 Kohl's stores in Illinois could soon see some changes.

Kohl's — which said this year that it's evolving from a department store to more of a lifestyle concept — is in negotiations with Vitamin Shoppe owner Franchise Group, Inc. that could determine the fate of the chain. As part of a three-week exclusive negotiation period, Franchise Group is seeking to acquire Kohl’s for $60 per share, a move that would put Kohl's value at around $8 billion.

The acquisition talks come as the future of the Kohl’s brand remains undecided. In December, New York-based hedge fund Engine Capital urged the company 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.

The acquisition deal by JCPenney's owners would have seen the Kohl's brand sold for $8.6 billion. Under the 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 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 more Illinois beauty counters to open this year. Current plans call for 850 Sephora stores to open inside Kohl's locations by 2023. It’s not immediately clear if the partnership would continue under Franchise Group ownership.

In Illinois, several Kohl's stores have opened Sephora locations in recent weeks, including stores in Algonquin and Crystal Lake.

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.