Kohl's Officially Done For?

After years of declining sales and repeated attempts to revive its business, Kohl's effectively decided to throw in the towel.

The chain put its business up for sale, in the hope that the buyer would be able to do what the struggling retailer was unable to do.

Several offers came almost immediately, and Kohl's soon began acquisition talks with the highest bidder.

However, in a surprising turn of events, Kohls has decided to cancel their sales offer and take matters back into their own hands.

Ironically, this may be the most spectacular move the company has made in recent years. If they play their cards right it can save them from an untimely fatal fate.

Franchise Group,Holding Company that owns The Vitamin Shoppe, was the entity negotiating the acquisition of Kohl's.If the acquisition had gone through it would almost certainly have meant Kohl's death

Kohl's has seen the mistake in his own way and will live to fight another day, at least for now. Kohl's president Peter Bonparth announced that the deal with the franchise group would not go ahead.

He cited concerns with volatile retail markets and riskier financing options amid periods of unusually high inflation.

"Given the environmental and market volatility, the Board determined that it was not prudent to continue with a deal," Bonparth said via The Wall Street Journal.

Bonparth said that going forward, Kohls has decided to correct the losses in the current market and the gaps in its business. In times defined by such uncertainty, this is a wise move.

Ultimately, Kohl's decision to keep its business for a while is probably the best chance it has of survival in the long term.

Nicola Kinsella, who serves as SVP of Global Marketing at Fluent Commerce, believes this is the move she should have taken if she had any intentions.

"Kohl's should continue to innovate with new partnerships and offerings and look forward to a more strategic, value-based proposition that will help them drive long-term growth," Kinsella said.

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