Kohl’s is making a private sale offering of approximately $360 million of senior secured notes due in 2030, which the department store retailer will use to repay revolving credit loans, including all its 4.25% notes due at maturity in 2025. Collateral for the notes will include Kohl’s 11 distribution centers and ecommerce fulfillment facilities, which will be held in a newly formed holding company.
Like many department stores, Kohl’s has been struggling in recent years. For its 2024 fiscal year, which ended Feb. 1, 2025, net sales decreased 7.2% and comparable sales declined 6.5%. The retailer also has been troubled by upheavals in its C-suite; earlier this month, Kohl’s CEO Ashley Buchanan was fired for allegedly engaging in questionable vendor transactions. However, the Kohl’s board emphasized that Buchanan’s termination was not related to the company’s performance and did not involve anyone else.
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