Wisconsin based Kohl’s has been facing a slump and the retailer recently announced that it was in three weeks negotiations with the Franchise Group for a probable sale at $60 per share. This price tag would make the company have a value of roughly $8 billion. Shares of both the companies rose, on Tuesday after the news was announced.

Franchise Group is not a well known conglomerate in the market, as yet. It consists of the The Vitamin Shoppe, Buddy’s Home Furnishings and other brands including furniture retailing and a tutoring service.

Franchise Group is reported working with Oak Street Real Estate Capital as a financier for the deal. A person familiar with the matter told CNBC News that the deal would be mostly financed through real estate. Kohl’s said that the board of directors of both the companies had to approve of the sale and that there was no guarantee that it would go through.

All the retailers in the Franchise Group did a combined revenue of $3.3 billion in 2021. However, Kohl’s total revenue crossed $19.4 billion in the 12-month period that ended on January 29.

According to Wisconsin Public Radio (WPR) leadership at Kohl’s had said that the corporation would entertain “expressions of interest” from those who were interested in acquiring it, in February. Some of those who had expressed interest in Kohl’s this year included the following:

Hudson Bay Co., the owner of Saks Fifth Avenue
Simon Property Group, the owner of JCPenney
Brookfield Asset Group.

In March, CEO Michelle Gass said that the brand was “undergoing a significant transformation.” During her tenure with Kohl’s, Gass formed partnerships with business and brands such as Sephora and Amazon.

In May, the Menomonee Falls headquartered group shareholders had rejected an attempt by activist investors who wanted to take over Kohl’s board. The shareholders’ votes left the board intact.

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