“Plans For Kohl’s Closings in 2022” Update: Sales Negotiations Terminated

Joel Eisenberg

A long-awaited and widely-anticipated sale fell through on July 1. What does the future hold for the financially-challenged company?

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Kohl’sShutterstock

Author’s Note

This article is based on corporate postings and accredited media reports. Linked information within this article is attributed to the following outlets: CNN.com, The Wall Street Journal, Reuters.com, FootwearNews.com, Investors.Kohls.com, and ScrapeHero.com.

Introduction

On June 30, NewsBreak published “Plans For Kohl’s Closings in 2022,” my article about the financially challenged discount chain and progress towards a sale. On July 1, negotiations for that sale had fallen through.

In my article, I excerpted a June 7 CNN.com report, “Kohl’s Puts Up a For-Sale Sign,” that discussed current company goals: Kohl’s (KSS) said late Monday that it had entered into a three-week exclusive negotiation period for a potential sale with Franchise Group (FRG), a holding company which owns The Vitamin Shoppe and other retail brands. Franchise Group has proposed to buy Kohl’s for $60 a share. Kohl’s stock closed at $42.12 on Monday and rose 10% during early trading Tuesday on the news. The deal would value Kohl’s at around $8 billion, The Wall Street Journal reported, about 5 times more than it was worth last week. Kohl’s said that during the negotiation period there were no assurances a deal would be reached.

Yesterday, negotiations for that sale were announced as discontinued.

From Reuters.com: U.S. department store chain Kohl's Corp (KSS.N) on Friday called off its sale to Franchise Group (FRG.O) after months of negotiations, citing sinking markets and difficult financing conditions. Kohl's shares, already down 28% since January, tumbled nearly 15% in pre-market trading on news of the collapsed talks and the retailer's shrinking sales. "Given the environment and market volatility, the board determined that it simply was not prudent to continue pursuing a deal," Peter Boneparth, Kohl's board chairman, said in a statement.

Where does Kohl’s go from here?

Let us explore further.

Kohl’s, 2022

See here for the next potential round of Kohl’s closures, according to FootwearNews.com.

Regarding the discontinuance of the planned sale, the company remains in a key position in terms of the importance of upcoming decisions. Per a March, 2022 release published on the company’s investor website, which you can see here, Kohl’s has been looking strongly at strategic growth initiatives. It should be noted the entity was not yet in negotiations with Franchise Group.

To date, according to ScrapeHero.com: There are 1,156 Kohls locations in the United States as of June 26, 2022. The state with the most number of Kohls locations in the US is California, with 117 locations, which is 10% of all Kohls locations in America.

As further excerpted from my prior article on the chain: In recent years, though the company has retained its status as the country’s largest department store, revenues have notably fallen, in large part, according to analysts, due to the pandemic and new online shopping habits.

Whether the company will look for another buyer is purely speculative, as nothing formal has been announced.

Conclusion

Kohl’s finds itself in a challenging period, though they have faced such difficulties before.

Any further updates as to the repercussions, if any, of the Franchise Group break will be reported here, on NewsBreak.

Thank you for reading.

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I am an award-winning author, screenwriter for film and television, and producer. My mission on News Break is to share socially important perspectives on both culture and pop-culture. Member of PEN America, and the WGA.

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