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.