People walk near the entrance of Kohl’s department store on June 07, 2022 in Doral, Florida. Kohl’s announced that it has held exclusive talks with Franchise Group, proposing to purchase the retailer for $60 per share.
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retail holding company franchise group lowering your bid for kohlso About $60 to closer to $50 per share, according to a person familiar with the deal talks.
Shares of Kohl’s were down more than 10% on Wednesday afternoon.
The owner of Vitamin Shoppe is actively considering whether buying Kohls is the best use case for the franchise group’s capital, said the person, who asked to remain anonymous because talks are private and ongoing.
The person said that the franchise group has made financing arrangements with lenders. But the company, run by Chief Executive Officer Brian Kahn, is now weighing lower prices as retailers grapple with bloated inventory as consumers balk at higher prices.
Earlier this month, the franchise group Offered a bid of $60 per share to acquire Kohl’s at a valuation of approximately $8 billion, The two companies then entered into a three-week period during which they could consolidate any due diligence and final financing arrangements. which ends this weekend.
Shares of Kohl’s opened Wednesday at $41.52 and traded as low as $34.64 at the end of May.
Representatives for Kohls and Franchise Group did not immediately respond to CNBC’s requests for comment.
This story is developing. Please check back for updates.