Kohl's (Menomonee Falls, Wis.), The Home Depot (Atlanta) and Wal-Mart Stores (Bentonville, Ark.) have signed a joint agreement to purchase the rights to 35 former Bradlees stores. Bradlees was the Braintree, Mass.-based discount retailer that closed 105 stores and declared bankruptcy in late December.
If the deal goes through, Kohl's will acquire 15 of the stores – 12 in the Boston area and three in New Jersey, considerably enhancing its presence in the Northeast. The retailer currently operates about 300 stores, mostly in the Midwest and Mid-Atlantic. It had previously announced intentions to expand its chain by about 50 stores, into more regions of the country.
The remaining 20 property leases would be divided between Home Depot and Wal-Mart. No financial terms were disclosed, but the deal is rumored to be fetching more than $100 million. The transaction is subject to the approval of the U.S. bankruptcy court for the Southern District of New York, which is overseeing Bradlees'bankruptcy. Once approved, the deal is expected to be completed within 90 days, and Kohl's expects to be ready to open the remodeled stores in spring 2002.