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Kohl's buys Bradlees stores
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February 19, 2001: 10:42 a.m. ET
Retailer to share bankrupt chain's stores with Wal-Mart and Home Depot
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NEW YORK (CNNfn) - Retailer Kohl's Corp. said Monday it planned to purchase the rights to occupy 35 former Bradlees stores in the Northeast.
The agreement calls for Kohl's occupy 15 stores, with the remaining 20 split between Wal-Mart Stores Inc. (WMT: Research, Estimates) and Home Depot Inc. (HD: Research, Estimates)
A Kohl's spokeswoman was not immediately available for comment Monday. Wal-Mart and Home Depot were also not immediately available for comment.
Bradlees declared bankruptcy in December, a victim of a slowing economy and increasing competition from discount chains such as Wal-Mart and Kmart. Wall Street has been expecting a large and expanding chain such as Menemonee Falls, Wis.-based Kohl's (KSS: Research, Estimates) and Bentonville, Ark.-based Wal-Mart to snap up Bradlees' stores, which analysts have said occupy the last prime retail space in the Northeast.
Kohl's was thought to be the most natural fit, since the chain often looks for stores under 100,000 square feet, and many of Bradlees' stores are under 60,000 square feet.
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The agreement is pending approval by the U.S. Bankruptcy Court for the Southern District of New York within 90 days.
This is not the first time Kohl's has taken advantage of an opportunity to expand in the Northeast. About two years ago, Kohl's snatched up many former Caldor stores when that chain closed its doors.
Shares of Kohl's gained 72 cents to $69.61 Friday. Wal-Mart shares gained 36 cents to close at $52.36 and Home Depot shares fell $1.61 to $43. 
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