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.

Kroger and Albertsons to Sell More Stores in Attempts to Get Merger Approval

Kroger and Albertsons have announced plans to sell more stores in an attempt to get the green light for their $25 billion merger. Kroger reached...

Stocks Continue Slide as Israel-Iran Tension Ensues

Stocks on the New York Stock Exchange continued their drop-off on Friday as investor anxiety rose following Israel's retaliatory strike against Iran. Market composure...

United Airlines Stock Jumps 14% After Strong Q1 Results and Optimistic Projections for Q2

Following a strong first-quarter earnings report, United Airlines saw its stock jump 14% on Wednesday. Investors were also intrigued by the company’s optimistic projections...