Kohl's Receiving Takeover Bids: The Path Forward Could Get Ugly

While the CEO of Kohl's recently released a makeover plan, that hasn't stopped the investors from circling. Here's what's happening now:

- It seems like there are at least two parties in play -- Hudson's Bay and Private Equity firm Sycamore Partners.

- Stock jumped on the news, indicating the market is encouraged by the fact that Kohl's may need a new concept and leadership, and not just another rebrand or transformation.

- Another player Engine Capital released a report saying they expect the Board to reject any bids due to a misguided / overinflated sense of the value of the company today.

The private equity approach would likely be a ruthless gutting is my feeling, tied to a kind of complete reimagination of what Kohl's could be.

Hudson Bay I hadn't considered before, but if you consider Saks stores as the premium brand and Kohl's as the mid-market brand there could be some options here.

I expect this path would split out online and stores similar to Saks? It's possible.

I don't always say this, but private equity may be the right play here, backed by the right kind of reimagination/streamlining.