Citing sources familiar with the matter, Reuters reported that Kohl's recently has been involved in conversations with At Home Group to explore a potential deal.
At Home Group has been exploring a sale for the last three months and is already in advanced deal negotiations with private-equity firms and buyout firms including Hellman & Friedman LLC.
Private-equity firms AEA Investors LP and Starr Investment Holdings LLC took the company public in 2016. They own 16.6% and 9.9% of At Home Group, respectively.
Shares of At Home Group gained 1.57% to $22.70 in early trading on Thursday after gaining more than 8%, or $1.69, to $22.30 on Wednesday. Kohl's shares were up 0.17% at $64.26 in early trading on Thursday after falling 1.95%, or $1.69, to $22.30 on Wednesday.
At Home Group operates 188 stores in 38 states, selling everything from furniture, mirrors, rugs, art and housewares to tabletop, patio and seasonal décor. Kohl's has more than 1,100 stores.