Retail holding company Franchise Group is considering lowering its bid for Kohl’s to closer to $50 per share from about $60, a source told CNBC.
Earlier this month, Kohl’s entered into exclusive negotiations with Franchise over a potential sale of the retailer, valuing it at nearly $8 billion. The two companies then entered an exclusive three-week window during which they can firm up any due diligence and final financing arrangements. That ends this weekend.
Franchise Group is considering whether buying Kohl’s is the best use of the Vitamin Shoppe owner’s capital, according to the report. The company is said to be growing concerned about the retail environment that’s facing elevated inventories and the possibility of a recession.
Franchise Group, which also owns and operates the Buddy’s Home Furnishings retail chain, was in discussions to keep the Kohl’s top management team, including its Chief Executive Michelle Gass, Reuters reported on Tuesday.
