Kohl’s concludes strategic review process
Department store chain Kohl’s has announced that it has concluded its strategic review process without a sale of the business.
The US company had been in talks regarding a sale with Franchise Group after it attracted 25 interested parties.
In a statement, Kohl’s chair Peter Boneparth said: “After engaging with more than 25 parties in an exhaustive process, FRG emerged as the top bidder and we entered into exclusive negotiations and facilitated further due diligence.
“Despite a concerted effort on both sides, the current financing and retail environment created significant obstacles to reaching an acceptable and fully executable agreement. Given the environment and market volatility, the board determined that it simply was not prudent to continue pursuing a deal.”
Giving an update on its second quarter sales performance, Kohl’s said trading is being impacted by a softening in consumer spending due to inflationary pressures. As a result, it now expects sales to be down high-single digits for for the period, compared to prior expectations of down low-single digits relative to last year.
The company said it will share more on current trading when it releases its second quarter results on 18 August.
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