×
60 609
Fashion Jobs
MIZZEN+MAIN
Account Executive - Specialty ne & Midwest
Permanent · DALLAS
COTY
Area Sales Manager
Permanent · Miami
LEVI'S
Part-Time Sales Supervisor
Permanent · Katy
SALLY BEAUTY HOLDINGS LLC
Outside Sales Representative -Cosmoprof
Permanent · Colorado Springs
SALLY BEAUTY HOLDINGS LLC
2nd Shift Inventory Control Specialist
Permanent · Jacksonville
NORDSTROM
Asset Protection - Agent - North Point Marketcenter Rack
Permanent · Alpharetta
NORDSTROM
Asset Protection - Agent - The Outlet Collection Rack
Permanent · Auburn
NORDSTROM
Asset Protection - Security Ambassador - Galleria at Roseville
Permanent · Roseville
LULULEMON
Assistant Manager, Operations | Cherry Creek Mall (1 Year Contract)
Permanent · Denver
LULULEMON
Assistant Manager, Operations | Bellevue Square
Permanent · Bellevue
LULULEMON
Assistant Manager, Operations (Hyde Park)
Permanent · Chicago
OLD NAVY
Assistant Manager, Customer Operations - Airport Square
Permanent · North Wales
OLD NAVY
Assistant Manager, Customer Operations - Monroe Mktplace
Permanent · Selinsgrove
OLD NAVY
Asset Protection Coordinator - Florida West
Permanent · Estero
OLD NAVY
Assistant General Manager, Merchandising - Jefferson Mall
Permanent · Louisville
OLD NAVY
Assistant General Manager, Merchandising - Willowbrook-Houston
Permanent · Houston
OLD NAVY
Assistant Manager, Customer Operations - Oshkosh
Permanent · Oshkosh
OLD NAVY
General Manager - Ridgewood Court
Permanent · Jackson
OLD NAVY
General Manager - Monroe Marketplace
Permanent · Selinsgrove
OLD NAVY
Asset Protection Coordinator - Portland
Permanent · Beaverton
OLD NAVY
General Manager - Tikahtnu Commons
Permanent · Anchorage
OLD NAVY
General Manager - Watertown
Permanent · Watertown
By
Reuters
Published
Jul 1, 2022
Reading time
2 minutes
Share
Download
Download the article
Print
Click here to print
Text size
aA+ aA-

Kohl's ends sale talks with Franchise Group, shares plunge

By
Reuters
Published
Jul 1, 2022

U.S. department store chain Kohl's Corp on Friday called off its sale to Franchise Group after months of negotiations, citing sinking markets and difficult financing conditions.


Reuters



Kohl's shares, already down 28% since January, tumbled nearly 15% in pre-market trading on news of the collapsed talks and the retailer's shrinking sales.

"Given the environment and market volatility, the board determined that it simply was not prudent to continue pursuing a deal," Peter Boneparth, Kohl's board chairman, said in a statement.

Kohl's, which operates more than 1,100 stores in the United States, last month announced that it had entered exclusive talks with Franchise Group after being offered $60 a share.

Franchise Group, owner of brands such as Vitamin Shoppe and Buddy's Home Furnishings, cut its offer on June 27 to $53.

The two sides "faced significant obstacles reaching a fully executable agreement", Kohl's said on Friday.

Kohl's is also contending with tough market conditions as shoppers tighten their belts in the face of high inflation. The company said it now expects second-quarter sales to be down by a high single-digit percentage, compared with previous expectations of low single-digit decline.

Activist investors had pushed Kohl's to sell itself for months and the company began receiving bids in January at about $65 a share but said those undervalued the business.

The company won a proxy contest against Macellum Advisors in May amid concerns that changes at board level could harm sales talks.

Since then, market conditions have worsened dramatically, with fears of rising interest rates, inflation and the Ukraine war prompting bidders to drop out or reduce their offers.

A number of major corporate deals have been shelved this year as a downturn in equity markets pummels company valuations while a spike in interest rates makes deal financing costlier and harder to access.

Walgreens Boots Alliance this week scrapped its plan to sell its UK pharmacy chain Boots, saying no third party was able to make an adequate offer owing to turmoil in global financial markets.

Kohl's in May joined other retailers in cutting its full-year profit forecast, with Chief Executive Michelle Gass saying demand at the company's department stores had weakened considerably because of inflation.

Franchise Group had said that Gass and other top executives would keep their jobs after a sale, suggesting to many investors that a deal was imminent.

© Thomson Reuters 2022 All rights reserved.