- Kohl's Corp KSS has called off discussions to sell its business to Franchise Group Inc FRG, CNBC reported.
- The decision comes at a time when there is increased volatility in the stock market and the economy as the Federal Reserve seeks to hike interest rates to contain inflation.
- Related: Multiple Bidders, Key Executives Departure, Mixed Q1 Earnings - Lots Going On With Kohl's
- Franchise Group had been considering lowering its bid for Kohl's to $50 per share from an earlier offer of $60 per share.
- The two companies then entered an exclusive three-week discussion to finalize financing arrangements in early June.
- Earlier this year, Kohl's reportedly shot down a buyout offer from Starboard-backed Acacia Research Corp ACTG priced at $64 a share, saying the offer was too low to be considered.
- The department store chain has been under pressure from the activist firm Macellum Advisors to consider a sale or other alternatives to overhaul its recent underperformance.
- Also Read: Walgreens Retains Boots Business Ownership Amid Market Instability
- Price Action: KSS shares are trading lower by 15.10% at $30.30 in premarket on the last check Friday.
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