Kohl’s Shares Nosedive as Sale Said on Hold ‘Indefinitely’
2022.06.03 01:06
Kohl’s (KSS) Shares Nosedive as Sale Said on Hold ‘Indefinitely’
Kohl’s (NYSE:KSS) shares plunged 8% after-hours Thursday after the New York Post reported that the auction of the company has been “delayed indefinitely”, citing sources.
This would be a sharp reversal from earlier this year when multiple bidders were circling the company and a bid of $64 per share was submitted.
For the last several weeks, media reports have leaked out showing that one by one the bidders were losing interest.
Past bidders for the company included Starboard Value-backed Acacia Research, Hudson (NYSE:HUD) Bay, Sycamore Partners, Franchise Group (NASDAQ:FRG), and J.C. Penney investors Simon Property Group Inc (NYSE:SPG) and Brookfield Asset Management Inc.
It is unclear who is left and what price could be agreed upon by both parties.
In mid-May, the company posted dismal first-quarter results and outlook. Sales for the year are now expected to be in the range of 0% to 1% as compared to the prior year. They had seen revenue growth of 2% to 3%.
