Burt Flickinger, managing director of the Strategic Resource Group, argues that the increase in retail sales is due to inflation.
JCPenney’s owners have made an offer to acquire arch-rival Kohl’s in a deal that could value the department store chain at over $8.6 billion, The Post has learned.
As part of the proposal, mall giant Simon Property and Canada-based Brookfield Asset Management — which together bailed out JCPenney from bankruptcy in December 2020 — have offered to acquire Kohl’s for $68 a share, sources said from near the talks.
The owners of JCPenney have made an offer to acquire department store chain Kohl’s Inc., a source told the New York Post. (iStock / iStock)
| ticker | security | Last | To change | To change % |
|---|---|---|---|---|
| KSS | KOHL’S CORP. | 60.39 | +3.03 | +5.28% |
Kohl’s shares closed at $60.39 on Monday, up 5.3 percent.
A well-placed source told The Post that the plan is for JCPenney’s corporate parents to continue to maintain two separate brands while streamlining operations and cutting costs. The bidders’ plan for Kohl’s calls for a cost reduction of $1 billion over the next three years, according to the source.
OLD NAVY BLUE TO AVOID PRICE RISE ON CHILDREN’S CLOTHING DURING THE BACK TO SCHOOL SEASON
The Post has reached out to Simon Property Group and Brookfield Asset Management for comment.
Wisconsin-based Kohl’s put itself up for sale earlier this year at the urging of activist investors Macellum and Engine Capital, who were unhappy with the company’s direction.
Kohl’s put itself up for sale earlier this year. (Photographer: Daniel Acker/Bloomberg via Getty Images) ( Daniel Acker/Bloomberg via Getty Images) / Getty Images)
Private equity giants Sycamore Partners and Leonard Green & Partners, as well as Saks Fifth Avenue’s Canada-based parent, Hudson’s Bay, are reportedly interested in acquiring Kohl’s.
Goldman Sachs has been tapped to lead a potential sale process.
According to a source, Simon and Brookfield have proposed that a single management team would run JCPenney and Kohl’s while merging the information technology systems so that one entity is responsible for the chains. The companies would also have all private garments made by the same in-house brand, the source said.
SUPPLY CHAIN EXPERT WARNS OF RISING RATES IN PEAK SEASON: “I SEE A LOT OF PROBLEMS”
When the sale is complete, the new company would abandon plans to launch Sephora concession stands at Kohl’s locations, The Post has learned.
Simon Property Group is led by CEO David Simon, son of the company’s late co-founder Melvin Simon. David Simon’s uncle, Herb Simon, who co-founded the company with his late brother, is the owner of the NBA’s Indiana Pacers – the team the Simon brothers bought in 1983.
A parking lot at a JC Penney store in Roseville, Michigan is empty. (AP Photo/Paul Sancya, File/AP Newsroom)
Simon Property Group and Brookfield Asset Management acquired JCPenney after the 118-year-old retailer filed for Chapter 11 bankruptcy in May 2020.
GET FOX BUSINESS ON THE GO BY CLICKING HERE
JCPenney was one of two dozen retail casualties of the coronavirus pandemic as lockdown measures prevented in-person shopping while consumers turned to online options like Amazon.
The restructuring forced the closure of a third of its stores nationwide. Only 689 JCPenney locations are currently operational – down from more than 1,110 in 2012.