CNBC

Franchise

01/07/2022 05:10

(Adds background, disclosures)
    July 1 (Reuters) - Kohl's Corp  KSS.N  is terminating talks
to sell the U.S. department store chain to Vitamin Shoppe
operator Franchise Group  FRG.O , CNBC reported on Thursday,
citing two people familiar with the matter. (https://cnb.cx/3AesY88)
    The report, however, did not elaborate on the reason behind
ending the discussions.
    In June, Kohl's entered exclusive negotiations with
Franchise Group, valuing it at nearly $8 billion, the companies
had said. Franchise offered a bid of $60 per share for the
department store chain.
    The retailer was under pressure after activist investors
Macellum Advisors GP LLC and Engine Capital LP called on Kohl's
earlier this year to sell itself.  urn:newsml:reuters.com:*:nL1N2U512S
    Kohl's and Franchise Group did not immediately respond to
Reuters requests for comment.
    Last week, CNBC reported that Franchise was considering
lowering its bid to $50 per share from its initial offer of $60,
sending Kohl's shares down more than 10%.  urn:newsml:reuters.com:*:nL4N2Y935R
    Franchise, which also owns brands including the Buddy's Home
Furnishings retail chain, was in talks to keep Kohl's top
management team, including its Chief Executive Officer Michelle
Gass.  urn:newsml:reuters.com:*:nL1N2Y82X3

 (Reporting by Rachna Dhanrajani in Bengaluru; editing by
Uttaresh.V and Rashmi Aich)
 ((RachnaManojkumar.Dhanrajani@thomsonreuters.com;))