Kohl’s ends sale talks with Franchise
• The decision to end deal talks comes as the retailer’s stock plunges and its sales decline
Kohl’s Corp (NYSE: KSS) said on Friday it is terminating talks of selling its business to Franchise Group (NASDAQ: FRG).
The decision to end deal talks comes as the retailer’s stock plunges and its sales decline.
Shares of the company fell nearly 20% on Friday.
Franchise had earlier proposed to buy the retailer for $60 per share, valuing it at roughly $8 billion.
Kohl’s also cut its outlook for the fiscal second quarter due to shift in consumer spending due to high inflation.
The retailer now expects sales to be down high-single digits for the second quarter, as compared to prior expectations of down low-single digits relative to last year.
In February, Kohl’s had rejected a takeover offer from private equity firm Sycamore that offered to pay at least $65 per share for the retailer.
Picture Credits: Getty Images
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