HomeIndustriesKohl's No Longer Up for Sale After Franchise Group Talks Collapse

Kohl’s No Longer Up for Sale After Franchise Group Talks Collapse

Kohl’s won’t become a part of the American holding company Franchise Group anytime soon. The Wisconsin-based retailer confirmed that takeover talks with Franchise Group have collapsed and that Kohl’ will continue operating as an independent company.

Kohl’s started a “strategic review process” earlier this year that saw the company start the process of selling itself. Multiple interested parties have made their approaches, including Franchise Group, which emerged as a top bidder with a $60 per share offer. However, The Vitamin Shoppe parent company later lowered its bid to $53, causing the breakdown in negotiations.

“Despite a concerted effort on both sides, the current financing and retail environment created significant obstacles to reaching an acceptable and fully executable agreement,” said Peter Boneparth, chairman of Kohl’s board.

After the news about the failed sale became official, Kohl’s stock (KSS) dipped more than 20 percent. The KSS closed on Thursday at $35.71 per share before plunging to $28.25 by noon on Friday.

Kohl’s is currently the largest department store chain in the nation. It has 1,162 locations, operating a store in each state besides Hawaii, and annual sales of around $19 billion. However, the business hasn’t been great for Kohl’s recently due to supply chain issues, rising costs, and competition. In response, the company tried to take several actions to bounce back but didn’t see many positives so far.

Weekly Jobless Claims Decline As Job Market Remains Tight

The latest U.S. weekly jobless claims report showed that the number of Americans filing new claims for unemployment benefits went down this week. This...

Global Central Banks Continue Rate Hikes Amid Banking Crisis

Multiple central banks across the globe implemented interest rate hikes this past week as policymakers look to advance the fight against inflation amid the...

U.S. Futures Up, European Stocks Lower Amid Growing Expectations Of Fed Rate Cut

U.S. futures edged higher on Thursday following bets that the Federal Reserve would cut interest rates in the near term. In contrast, European stocks...