The department store Kohl’s has received a roughly $9 billion offer to go private in a deal with an investment consortium backed by activist hedge fund Starboard Value, according to two people familiar with the matter.
The department store chain on Monday confirmed it has received an offer but declined to comment or offer any details. In response to the report, shares of Kohl’s jumped 36%, or $16.87 per share, to close Monday at $63.71.
The offer highlights the resurgent interest that activist investors are showing in department stores, as brick-and-mortar retailers have struggled with supply chain issues in the pandemic and increasing competition from online sites. Shares of retailers have been under pressure for the past several years, while those of online sites have, until recently, been soaring.
Kohl’s is already under pressure to improve its share price. The activist firm Macellum Advisors, which has a 5% stake in Kohl’s, urged the retailer in a letter Tuesday to explore strategic alternatives, including a sale. That was after it raised similar criticisms over Kohl’s stock performance last year.
Closer to home
Among more than 1,150 stores nationwide, Kohl’s operates stores in East Brainerd, Hixson, Cleveland, Tennessee and Dalton, Georgia.