Customers leave a Kohls store on November 12, 2015 in San Rafael, California.
Justin Sullivan | Getty Images News | Getty Images
U.S. merchant Kohl has approached At Home to express interest in acquiring the American home decor, telling people who are familiar with the case Wednesday.
An agreement will help Kohl expand its customer base, focusing on women's, men's and children's clothing and increasing their presence in the home goods category, which traditionally represented a small part of their business.
Kohl's share dipped nearly 2% late Wednesday, while At Home's stock rose more than 7%.
Kohl's recently started talks with At Home to explore a deal, the sources said. At Home has explored a sale over the past three months and is already in advanced deal negotiations with private equity companies, including Hellman & Friedman, the sources were added.
There is no certainty that an offer from Kohl's will materialized as a result of the preliminary discussions, and At Home may turn back to trying to sell to a buyout company, adding the sources, and asking not to stay identified because the case is confidential.
Kohls and At Home did not immediately respond to requests for comment, while Hellman & Friedman refused to comment.
At the end of trading on Tuesday, At Home Group had a market value of $ 1
CNBCs Nadine El-Bawab contributed to this report.