Kohl's Drops Sale Negotiations With Vitamin Shoppe Owner

MENOMONEE FALLS, WI — Wisconsin-based Kohl's Corporation has dropped exclusive sale negotiations with Vitamin Shoppe-owner Franchise Group Inc., the companies announced Friday.

Kohl's said it would not be "prudent" to continue a deal amid volatile markets and the current retail environment. The two brands began exclusive negotiations at the start of June. A three-week period was launched for negotiations. Franchise Group initially pitched purchasing Kohl's for $60 per share, valuing Kohl's around $8 billion.

"After engaging with more than 25 parties in an exhaustive process, FRG emerged as the top bidder and we entered into exclusive negotiations and facilitated further due diligence," said Peter Boneparth, chair of the Kohl's board.

"Despite a concerted effort on both sides, the current financing and retail environment created significant obstacles to reaching an acceptable and fully executable agreement. Given the environment and market volatility, the Board determined that it simply was not prudent to continue pursuing a deal," Boneparth said in the news release.

SEE ALSO: Kohl's Enters Ownership Talk With Vitamin Shoppe Owner

Before Kohl's entered negotiations with Franchise Group, the company had received pitches from Simon Property and Brookfield Asset Management, the New York Post reported.

As Kohl's looks ahead on business trends, the company said it's seeing a softening in consumer spending. Expectations are that sales will be down, but the company said it is taking action to navigate the new environment.

The negotiations and economic pressure come as Kohl's Corporation is working on a "significant transformation" of its business model. The company said it hopes to be the retailer of choice for the active and casual lifestyle.

Initiatives toward that goal have included partnerships with Sephora, smaller format stores, and a growing digital business, Kohl's said in its news release.

The Associated Press contributed to this article.