Kohl's falls after report Hudson's Bay, Brookfield likely out of sales process

May 27, 2022 1:51 PM ETKohl's Corporation (KSS)SPG, FRG, ACTG, BAM, BAM.A:CABy: Joshua Fineman, SA News Editor22 Comments

Kohl"s store front

JillianCain/iStock Editorial via Getty Images

Kohn's (NYSE:KSS) dropped 5% on a report that Hudson Bay's interest in purchasing the department store chain has cooled.

Brookfield (BAM) is also said to have exited the sales process, according to a Dealreporter item, which cited a source familiar.

The volatile markets are also a big issue for all bidders including Sycamore, Acacia Research (ACTG) and Franchise Group (FRG), according to the report. It's possible that valuation for Kohl's may drop to the mid $50s/share in a sale.

The latest report comes after CNBC said on Wednesday that Simon Property (SPG) was not planning to a make bid for Kohl's (KSS).

Reuters first reported on Wednesday that potential bidders are planning to make binding offers for Kohl's that are lower than their original bids for the department store chain. Some bidders indicated they may be willing to make offers for much as $62/share.

CNBC last Friday reported that the main potential bidders for KSS are said to be on the sidelines because they are having trouble getting financing for a deal, especially after Kohl's Q1 results.

Earlier Friday, Activist investor lambasts Kohl’s management amid sale uncertainty.

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