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JCPenney Owners Make Offer to Buy Kohl’s for $8.6 Billion

New bidders would scrap plans for Sephora shop-in-shop expansion, among other proposals

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The entry to a Kohl’s small-format store. Courtesy of Kohl’s.

Simon Property Group (Indianapolis), the largest owner of shopping malls in the U.S., and Brookfield Asset Management (Toronto) have offered to buy Kohl’s (Menomonee Falls, WI) in a deal that values the department store chain at about $8.6 billion, the New York Post reports.

According to a “well placed source,” Simon and Brookfield would operate the JCPenney and Kohl’s businesses separately. A single management team would lead the independent brands and aim to cut costs by $1 billion over the next three years.

The bidders said that all private apparel would be made by the same in-house label, and they’d also scrap Kohl’s previously announced plans for its Sephora shop-in-shop expansion, the article explains.

Simon Property Group and Brookfield pulled JCPenney out of bankruptcy in 2020. They are at least the fifth suitor to enter the race for Kohl’s, joining private equity firms Sycamore Partners and Leonard & Green, as well as Hudson Bay and Franchise Group.

Read more at the New York Post.

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