The potential sale of the Kohl's department store chain has fallen apart in a shaky retail environment of rising inflation and consumer anxiety.
Kohl's entered exclusive talks early this month with Franchise Group, the owner of Vitamin Shop and other retail outlets, on a deal worth about $8 billion, or $60 per share.
"Kohl's decision to terminate acquisition talks with Franchise Group comes as no great surprise," said Neil Saunders, managing director of GlobalData."Current market conditions are not conducive to corporate dealmaking, with issues around financing and raising debt and capital all acting as barriers to closure."
Kohl's struggled with anemic sales before the pandemic. Sales and profits rebounded in 2021, but the department store is now battling higher costs and a pullback from its price conscious shoppers who are being more cautious with their spending in the face of rising prices for gas, food, and just about everything else.
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