The Clap
Department store “Kohl’s” (NYSE: KSS) has ended talks with Franchise Group (NASDAQ: FRG), which like its name suggests, acquires & manages franchise companies.
Backstory
Kohl’s has been pressured to sell its business & reshuffle its board of directors. Franchise Group had offered to acquire Kohl’s at $60/share & was considering lowering it to $50 due to the bleak outlook for the industry.
Kohl’s stock currently trades around $35/share.
Why this matters
With the current volatility in the markets, financing such a deal would be more expensive. With the retail industry getting hit by rising interest rates, merger & acquisition costs may not be the favored move for companies at the present time.
