(Boursier.com) — Kohl’sthe American distribution chain, fell by nearly 20% before the stock market on Wall Street, below $29, while the group ended its negotiations for its possible takeover by Franchise Group, due to the current context and high market volatility. Kohl’s therefore evokes a significant deterioration in the retail environment since the start of the sale process. Worse, the group is also lowering its financial forecasts for the second fiscal quarter, citing weak consumer spending.
“Despite a concerted effort from both sides, the current financing and retail environment has created significant hurdles to reaching an acceptable and fully enforceable agreement,” said Peter Boneparth, Chairman of the Board of Directors of Kohls. “Given the environment and the volatility of the market, the board determined that it was simply not prudent to pursue a deal,” Boneparth added. While Kohl’s board has decided it is in the interests of shareholders for management to continue to operate independently, the retailer also said on Friday that its board “remains open to any opportunity to maximize the shareholder value”. Franchise Group also confirmed this morning that negotiations to acquire Kohl’s have been completed. The company, led by Brian Kahn, said it will continue to evaluate other internal and external transaction opportunities.
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