(Reuters) – Kohl’s Corp. (NYSE: KSS) is ending talks with Vitamin Shoppe operator Franchise Group (NASDAQ: FRG) to sell the U.S. department store chain, CNBC reported Thursday, citing two people with knowledge of the situation. (https://cnb.cx/3AesY88)
The report, on the other hand, did not explain why the talks were stopped.
Both companies said that Kohl’s and Franchise Group started exclusive talks in June, putting the value of the deal at nearly $8 billion. The franchise offered to buy the department store chain for $60 per share.
Early this year, activist investors Macellum Advisors GP LLC and Engine Capital LP asked Kohl’s to sell itself. This put the store under a lot of pressure.
Reuters asked Kohl’s and Franchise Group for comments, but they didn’t answer right away.
Last week, CNBC said that Franchise was thinking about lowering its bid from $60 per share to $50 per share. This caused Kohl’s shares to drop by more than 10%.
Franchise, which also owns brands like the Buddy’s Home Furnishings chain of stores, was talking about keeping Kohl’s top management team, including CEO Michelle Gass.
