American department store chain Kohl's confirmed that it had received multiple preliminary offers from companies interested in acquiring its operations. Kohl's said all of the proposals are still nonbinding and without committed financing.

Sources familiar with the matter said Canadian department store chain Hudson's Bay Co. is currently the leading bidder in the race to acquire Kohl's. Saks Fifth Avenue's parent company HBC is expected to bring the brand to Canada if it wins the bid. 

Menomonie, a Wisconsin-based retailer, said the proposals were submitted by the companies last week. Other companies that submitted proposals included private equity firms Sycamore Partners and Leonard Green Partners. Sources said Sycamore's bid had valued the company at more than $9 billion. Koh's market valuation as of Monday stood at around $8.1 billion.

The latest surge in interest comes after Kohl's rejected a $64 per share bid from Starboard-backed Acacia Research. Since then, Kohl's has pursued its own measures to increase earnings and attract new consumers. It set new long-term financial goals earlier this month, including increasing revenues by a low single-digit percentage yearly.

Activists, notably hedge fund Macellum Advisors, pushed Kohl's to consider selling itself earlier this year as its stock price trailed behind those of other big-box stores. Macellum claimed that the company was severely underperforming. Kohl's was expected to unleash more value from its real estate assets. Macellum, which holds around 5% of Kohl's shares, attempted to gain control of the board of directors last month by nominating ten directors.

Kohl's sent a separate letter to its shareholders on Monday, calling Macellum's actions "unjustified" and "unwarranted." The company added that it is looking to maximize shareholder value by pursuing negotiations with active bidders. Kohl's told investors that it is also continuing to review alternative measures and opportunities.

The retailer is pushing shareholders to vote for all of its board nominees at its annual meeting on May 11. Sources said a decision regarding the current acquisition offers might be finalized during the meeting. The company has reportedly already hired Goldman Sachs to lead a potential acquisition deal.

The Board of Directors' Finance Committee is in charge of the continuing examination of any expressions of interest. The Finance Committee is made up entirely of independent directors, as required by the 2021 settlement agreement with Macellum and other shareholders.

Since the start of the year, Koh's share prices have surged by more than 26%. Its share price closed at $62.43 per share Friday and opened 1% lower to $62 per share Monday.

Kohl's has announced plans to establish over 100 shops over the next four years, allowing the company to reach out to more customers in smaller cities and unlock a $500 million sales potential with a projected return on investment of 15% or more. Kohl's shops now fulfill 40% of online purchases, so the change is likely to improve the company's digital operations.