{"id":39708,"date":"2022-06-07T00:55:35","date_gmt":"2022-06-07T00:55:35","guid":{"rendered":"https:\/\/harchi90.com\/kohls-enters-exclusive-sale-talks-with-franchise-group\/"},"modified":"2022-06-07T00:55:35","modified_gmt":"2022-06-07T00:55:35","slug":"kohls-enters-exclusive-sale-talks-with-franchise-group","status":"publish","type":"post","link":"https:\/\/harchi90.com\/kohls-enters-exclusive-sale-talks-with-franchise-group\/","title":{"rendered":"Kohl’s enters exclusive sale talks with Franchise Group"},"content":{"rendered":"
The Kohl’s logo is displayed on the exterior of a Kohl’s store on January 24, 2022 in San Rafael, California.<\/p>\n
Justin Sullivan | Getty Images<\/p>\n<\/div>\n<\/div>\n<\/div>\n
Kohl’s said Monday that it has entered into exclusive negotiations with retail holding company Franchise Group, which is proposing to buy the retailer for $ 60 per share.<\/p>\n
Such a price tag would value Kohl’s at roughly $ 8 billion.<\/p>\n
Kohl’s shares closed Monday at $ 42.12, giving the retailer a market value of about $ 5.4 billion.<\/p>\n
Franchise Group is working with Oak Street Real Estate Capital to finance the deal mostly through real estate, according to a person familiar with the matter. The person requested anonymity because the deal isn’t finalized.<\/p>\n
A representative for Oak Street Real Estate declined to comment. <\/p>\n
The transaction remains subject to approvals of both companies’ boards of directors, <\/strong>Kohl’s said in a press release. There’s no guarantee that any agreement will be reached, he it said.<\/p>\n The exclusive period of three weeks will allow Franchise Group – which owns the Vitamin Shoppe and Buddy’s Home Furnishings, among other brands – and its financing partners to finalize due diligence and financing arrangements, and for the parties to complete the negotiation of binding documentation, Kohl’s said.<\/p>\n The retailer added that it will have no further comment until an agreement is reached or the discussions are terminated.<\/p>\n The saga at Kohl’s has been playing out for more than half a year.<\/p>\n The off-mall department store chain was first urged in early December 2021 by New York-based hedge fund Engine Capital to consider a sale or another alternative to boost its stock price. At the time, Kohl’s shares were trading around $ 48.45.<\/p>\n In mid-January, activist hedge fund Macellum Advisors then pressured Kohl’s to consider a sale. Macellum’s CEO, Jonathan Duskin, argued that executives were “materially mismanaging” the business. He also said Kohl’s had plenty of potential left to unlock with its real estate.<\/p>\n In early February, Kohl’s said it had brought on bankers at Goldman Sachs and PJT Partners to help the retailer field offers.<\/p>\n Last month, Kohl’s reported that its sales for the three-month period ended April 30 fell to $ 3.72 billion from $ 3.89 billion in 2021. The company also slashed its profit and revenue forecast for the full fiscal year, disappointing investors and muddying the picture for a potential deal.<\/p>\n Kohl’s shares hit a 52-week high of $ 64.38 in late January.<\/p>\n<\/div>\n<\/div>\n .<\/p>\n","protected":false},"excerpt":{"rendered":" The Kohl’s logo is displayed on the exterior of a Kohl’s store on January 24, 2022 in San Rafael, California. Justin Sullivan | Getty Images Kohl’s said Monday that it has entered into exclusive negotiations with retail holding company Franchise Group, which is proposing to buy the retailer for $ 60 per share. Such a …<\/p>\n