"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.
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.