Kohl's sells credit-card business

Kohl's sells credit-card business
Tags: Bank / Credit Union, Debit / Credit, Other, Public Companies
March 8, 2006

MarketWatch: Kohl's Corp. sold its credit-card operations to J.P. Morgan Chase for about $1.5 billion and is expected to apply the sale's proceeds toward a stock repurchase, which could be as high as $2 billion. The move by Menomonee Falls, Wisc.-based Kohl's follows an industry shift to sell credit-card operations to major banks that are better able to manage and promote the operational and marketing ends of the business. As part of the multiyear deal, Kohl's will receive ongoing payments tied to the profitability of the program.