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Coles withdraws "for sale" sign

The department store finished its strategic review process on Friday,franchise group (FRG), a holding company that owns vitamin shops and other retail brands.
Coles condemned the extreme volatility of themarket and stated that its finances were sound enough to do it alone.

"Despite the coordinated efforts of both sides, the current funding and retail environment has created a significant obstacle to reaching an acceptable and fully viable agreement," the company said. Peter Bourneparte, Chairman of the Board, said in a press release. He added that the company "remains open to every opportunity to maximize value for shareholders."

The franchise group has proposed to buy Coles for $ 60 per share. That's higher than $ 36 per share, which closed on Thursday. However, the franchise group has recently considered lowering the offer price, given that the economy is flashing warning signals. Friday news showed that Cole's stock fell by more than 15% in pre-market trading.

Coles also lowered its sales outlook on Friday. Inflationary runaway causes "softening of consumer spending," and Coles' current forecasts predict that second-quarter sales will fall to the high single-digit range. The company will report its quarterly financial results on August 18.

Over 1,100 US stores and annual sales of about $ 19 billion,Kohl's (KSS), The largest department store chain in the United States.
This sector isAmazon (AMZN), years under pressure from big box chains It has been declining for some time, includingWalmart (WMT)andTarget (CBDY)and discount clothing stores like TJ Maxx. Sears(SHLDQ), JCPenney, Neiman Marcus, Barney's and other companies have filed for bankruptcy in recent years.

Prices are falling due to discount players from the bottom and luxury stores from the top.

The company has tried several initiatives to attract customers and stave off competitors, but that strategy has not led to significant improvements in Coles.