Michigan Kohl's Stores To Be Acquired By Competitor: Report

MICHIGAN — Department store giant JCPenney offered a whopping $8.6 billion to acquire Kohl's, which has 46 stores in Michigan, according to a New York Post report.

Simon Property and Brookfield Asset Management, both of which aided JCPenney out of bankruptcy in 2020, have reportedly offered $68 a share to acquire the Wisconsin-based retailer.

The JCPenney and Kohl's brands will remain separate, a source told The Post, with 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 bidders aim to cut $1 billion in costs over the next three years, per the report. If finalized, the sale would nix plans to bring more Sephora locations inside Kohl's stores. It's not immediately clear what the fate of the already-existent Sephora counters in Michigan will be.

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 several more beauty counters to open this year. 850 Sephora stores inside Kohl's stores are planned to open by 2023.

Other interested bidders have included Saks Fifth Avenue's parent company Hudson's Bay, as well as private equity firms Sycamore Partners and Leonard Green & Partners, according to the New York Post.

Goldman Sachs has reportedly been pitched to facilitate the potential sales process, the report said.

There are 46 Kohl's stores in Michigan, compared to 23 JCPenney stores across the state.

Patch editors Justin Heinze and Nicole Rosenthal contributed to this report