Kohl’s is ending talks to sell its business after the retail industry has significantly deteriorated since the bidding process started.
A deal potentially worth about $8 billion was called off after exclusive talks with Franchise Group.
Shares of Kohl’s tumbled more than 20% at the opening bell.
“Despite a concerted effort on both sides, the current financing and retail environment created significant obstacles to reaching an acceptable and fully executable agreement,” said Peter Boneparth, chair of Kohl’s board, in a statement. “Given the environment and market volatility, the board determined that it simply was not prudent to continue pursuing a deal.”
The Wisconsin based company was the second major retailer ending a potential sale. On Thursday, Walgreen announced it was done trying to sell its Boots business in the U.K.
Kohl’s also said Friday that its board “remains open to any opportunities to maximize shareholder value.”
Amid high inflation, economic growth slowing and increasing interest rates, potential takeovers are becoming more expensive and difficult.
Franchise Group also confirmed Friday that its negotiations to acquire Kohl’s were terminated.
Kohl’s has more than 1,100 stores across 49 states.