Kohl's Corporation Completes Sale of Credit Card Business to Chase

Kohl’s Corporation announced today that it completed the sale of its proprietary credit card business to JPMorgan Chase. Under the terms of the purchase and sale agreement, Chase acquired Kohl’s private label credit card accounts and the outstanding balances associated with the accounts. Kohl’s received approximately $1.6 billion in cash for the account balances outstanding. As previously reported, Kohl’s plans to use the net proceeds to repurchase its common stock, to fund store expansion and for general corporate purposes.

Additionally, the companies have entered into a multi-year agreement that provides for Kohl’s to receive ongoing payments related to the profitability of the credit card portfolio. Kohl’s and Chase will also work together on various marketing initiatives designed to increase Kohl’s sales and further enhance credit growth and profitability.

Kohl’s will maintain its current credit operations and will continue to handle all customer service functions and be responsible for all advertising and marketing related to its credit card customers. All of Kohl’s current credit organization associates will remain employees of Kohl’s. Further, the company expects the credit organization to grow to support the long-term growth plans of the company.

Kohl’s charge card customers will continue to receive the same great benefits with the use of their charge card. Customers should continue to use their cards in the same manner as they do today.