By Svea Herbst-Bayliss

(Reuters) – Franchise Group (NASDAQ) Inc is now the owner and operator retail stores like Buddy’s Home Furnishings and The Vitamin Shoppe. Three people who are familiar with the matter stated that they have entered the race to become Kohl’s Corp (NYSE) with a $9B indicative offer.

The sources claimed that Franchise Group told Kohl’s they would pay $69 each share for the acquisition of the department store chain. This was subject to due diligence.

Franchise Group’s offer is not the highest, however. According to sources, Hudson’s Bay Company (NYSE:) indicated that it would pay at least $70 per Kohl’s share. Kohl’s shares closed Monday trading at $57.24.

Due to the confidentiality of these discussions, they declined to identify their sources.

Franchise Group’s involvement in this process allows Kohl to explore other options while it tries to sell the company under increasing pressure from activist funds. For Kohl’s debt pile to be assumed, totaling $6.8 Billion at the close of 2021 (including operating leases), the buyer will need to obtain committed financing.

Franchise Group had a market capitalization of $1.6billion and long-term debts of $1.9billion as of December 31st. The backing of Vintage Capital Management LLC (an investment company run by Brian Kahn, a retail investor veteran) would be crucial to the success of the transaction. Vintage held 12.3% of Franchise Group’s stock as of December, and Kahn served its chief executive.

A consortium backed by private equity firm Leonard Green & Partners LP, which includes Authentic Brands, has also made a bid for Kohl’s, the sources said.

Sources said that Sycamore Partners (a private equity group) and Acacia Resources Corp (a group including activist hedge fund Starboard Value LP controlled Acacia Research Corps made offers for Kohl’s during the first round. The status of these individuals is not known.

Representatives from Hudson’s Bay Franchise Group, Hudson’s Bay Leonard Green, Sycamore, Acacia and Sycamore did not respond when asked.

Kohl’s representatives could not reach us for comment.

Kohl’s operates over 1,100 stores across the United States and is currently fighting to avoid a challenge on its board. It also considers selling. In February, Hedge fund Macellum Advisors GP nominated 10 directors for the company’s board of 14 members. They argue that Kohl’s hasn’t done enough to improve their business and should be selling itself.

Macellum called for transparency in the sale process, and gave shareholders and bidders a better financial picture.

Kohl’s replied that they are carefully and thoroughly evaluating the proposals. According to the company, its investment bankers have spoken with over 20 buyers.