Virginia Kohl's Stores Could Get New Owners

VIRGINIA — The 31 Kohl's stores in Virginia 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.

There are 31 Kohl's locations in Virginia, and none in the District of Columbia.

A previous discussion of a sale to JCPenny 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 Virginia 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 Virginia, several Kohl's stores have opened Sephora locations in recent weeks, including stores in Kingstowne and Woodbridge.

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.

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 to JCPenney, according to the New York Post.

But that deal would have seen the end to Kohl's plans to open Sephora stores within the chain.

Clarification: An earlier version of this story said JCPenney was in talks to buy Kohl's, but that sale has been replaced by the current exploration of a sale to the Franchise Group.