Kohl’s Corp announced that acquisition talks with Franchise Group ended without a deal.
Franchise Group was the company with the highest offer at $60 a barrel, as Kohl’s was in talks with 25 companies.
“Despite a concerted effort on both sides, the current financial and retail environment has created significant obstacles to trying to reach an acceptable and fully enforceable agreement.
Given the environment and market volatility, the d.s. decided that it simply would not be prudent to continue to pursue an agreement,” said Peter Boneparth, chairman of the board.
There were press reports of the end of the talks earlier today, which sent Kohl’s stock down more than 11% before trading was suspended.
Franchise Group shares fell 3.2% in premarket trading.
The d.s. of Kohl’s reaffirmed its commitment to an accelerated share repurchase program of $500 million following the announcement of second quarter results.
The company also discussed its partnership with Sephora and a plan to open 100 smaller locations as part of its plan to grow the business.
However, in the second quarter it expects sales to be lower by a high single-digit percentage compared to a previous estimate of a low single-digit percentage.
The consensus estimates were for sales of $4.127 billion, down 2.3%.
Source: Capital
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