Target Eyeing $6.7 billion Credit Card Portfolio Sale

Big box retailer Target Corporation (NYSE: TGT) said Thursday that it is actively pursuing a transaction involving its $6.7 billion credit card portfolio.

The Minneapolis-based company noted in a Securities and Exchange Commission filing that it had retained advisory firm First Annapolis to explore the sale of their credit card portfolio which, according to the company, had receivables of $6.7 billion as of October 30, 2010.

“Target believes that improved portfolio performance, the successful launch of its REDcard Rewards program, and conditions of the capital markets create an attractive opportunity to engage interested parties regarding a possible sale of these assets,” the company said in the filing.

Target said any transaction it executes “would retain operational control of its strategically important financial services business.”

In 2008, Target sold 47 percent of its credit card receivables to JP Morgan Chase in a $3.6 billion deal (“Chase Buys Half Of Target Card Portfolio for $3.6 Billion,” May 6, 2008).