Kohl’s Corporation has decided to nix a sale to Franchise Group (FRG), which had emerged as the top bidder during a strategic review. The Menomonee Falls, WI-based retailer also lowered its outlook for the second quarter.
“Despite a concerted effort on both sides, the current financing and retail environment created significant obstacles to reaching an acceptable and fully executable agreement” with FRG, said Kohl’s board chairman Peter Boneparth. “Given the environment and market volatility, the board determined that it simply was not prudent to continue pursuing a deal.”
In view of continuing inflationary pressures on the consumer, Kohl’s said it’s seeing a softening in consumer spending and now expects sales to be down high-single digits for Q2, as compared to its prior expectations of down low-single digits relative to last year. Meanwhile, the company is reevaluating opportunities to monetize portions of its real estate portfolio.
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