Kohl's (NYSE:KSS) plunged 8% in after hours trading on a report that the sales process for the department store chain has been delayed indefinitely.
Kohl's (KSS) pushed back this week's deadline for final bids after several possible buyers dropped out, according to a NY Post report. The retailer hasn't given a new time for a potential sale. Any new offer is expected to be far less than the offer Kohl's originally turned down.
It's possible that the sales process is delayed until after the next quarter, the NY Post reported, citing sources familiar.
The latest update comes after Dealreporter on Friday said Hudson's Bay's interest in purchasing the department store chain has cooled. Brookfield (BAM), who was reportedly teaming with Simon Property (SPG) on a bid, also dropped out. CNBC reported last Wednesday that Simon Property was not planning to a make bid for Kohl's (KSS).
It's possible that valuation for Kohl's (KSS) may drop to the mid $50s/share in a sale, according to the Dealreporter item, after the company had originally received offers in the high $60s. The volatile markets are also a big issue for all bidders including Sycamore, Acacia Research (ACTG) and Franchise Group (FRG).
Reuters first reported last 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 as much as $62/share.