{"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":"
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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

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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

Kohl’s enters exclusive sale talks with Franchise Group<\/span> Read More »<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"default","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","spay_email":"","jetpack_publicize_message":"","jetpack_is_tweetstorm":false,"jetpack_publicize_feature_enabled":true},"categories":[8],"tags":[116,118,7008,173,1365,2469],"jetpack_featured_media_url":"","jetpack_publicize_connections":[],"jetpack_sharing_enabled":true,"fifu_image_url":"https:\/\/image.cnbcfm.com\/api\/v1\/image\/107005555-1643054163402-gettyimages-1366648766-0j7a2125_89cbc3ff-18b8-4aa0-9b01-e2a0a7091f26.jpeg?v=1643054214&w=1920&h=1080","_links":{"self":[{"href":"https:\/\/harchi90.com\/wp-json\/wp\/v2\/posts\/39708"}],"collection":[{"href":"https:\/\/harchi90.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/harchi90.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/harchi90.com\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/harchi90.com\/wp-json\/wp\/v2\/comments?post=39708"}],"version-history":[{"count":0,"href":"https:\/\/harchi90.com\/wp-json\/wp\/v2\/posts\/39708\/revisions"}],"wp:attachment":[{"href":"https:\/\/harchi90.com\/wp-json\/wp\/v2\/media?parent=39708"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/harchi90.com\/wp-json\/wp\/v2\/categories?post=39708"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/harchi90.com\/wp-json\/wp\/v2\/tags?post=39708"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}