Franchise Group mulls lowering bid for Kohl’s closer to $50 per share – CNBC

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The Kohl’s label is seen on a shopping cart in a Kohl’s department store in the Brooklyn borough of New York, U.S., January 25, 2022. REUTERS/Brendan McDermid

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June 22 (Reuters) – Franchise Group (FRG.O) is considering lowering its bid for department store chain Kohl’s Corp (KSS.N) to closer to $50 per share from about $60 apiece, CNBC reported on Wednesday, citing a source familiar with the deal talks.

Shares in Kohl’s fell more than 10% after the report.

Franchise is considering whether buying Kohl’s is the best use of the Vitamin Shoppe owner’s capital, according to the report.

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Kohl’s and Franchise Group did not immediately respond to Reuters requests for comment.

Earlier this month, Kohl’s entered into exclusive negotiations with Franchise over a potential sale of the retailer, valuing it at nearly $8 billion. read more

Franchise, which also owns and operates the Buddy’s Home Furnishings retail chain, was in talks to keep the Kohl’s top management team, including its Chief Executive Michelle Gass, Reuters reported on Tuesday. read more

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Reporting by Deborah Sophia in Bengaluru; Editing by Sriraj Kalluvila and Aditya Soni

Our Standards: The Thomson Reuters Trust Principles.

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