Kohl's has finished negotiations to sell to Franchise Group, owner of Vitamin Shoppe, and sent a discount department store. Said. Chain inventory plummeted on Friday trading.
The franchise group initially offered to buy Coles for about $ 60 per share, valuing retailers at $ 8 billion, but recently thepost reported. So, we considered reducing the bid to nearly $ 50 per share.
Coles said on Friday that the franchise group's revised proposal was $ 53 per share "without a clear funding arrangement to complete the deal," the two companies said. "We faced significant obstacles to reaching a fully viable agreement," he added.
"Despite the coordinated efforts of both parties, the current funding and retail environment poses a significant obstacle to reaching an acceptable and fully viable agreement. It was created, "Cole's chairman Peter Bournepartt said in a statement. "Given the environment and market volatility, the Board has decided that it is simply unwise to continue trading."
Call closed at $ 35.69 per share on Thursday. Stocks plunged by more than 18% in pre-market transactions on Friday.
Coles began exclusive negotiations with thefranchise groupin June, submitting the highest bid for the company to acquire Coles. Earlier this year, Kohl ’s declined Starboard-backed Acacia Research's$ 64 per share offeras too low.
According to Coles, 25 companies were interested in buying the company, but when the economy turned around, most were stripped when the final bid was scheduled for the end of May.
The company also drastically lowered its sales outlook for the quarter due to "softening of personal consumption." Based in Menomony Falls, Wisconsin, the company expects second-quarter sales to fall in the low single digits, not in the low single digits.
