Kohl’s Corp is terminating talks to sell the U.S. department store chain to Vitamin Shoppe operator Franchise Group, CNBC reported, citing two people familiar with the matter.
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.
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%.
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.
Source: Reuters.com