Kohl's sale falls apart in shaky retail environment

FILE - In this Feb. 25, 2021 file photo a woman arrives at a Kohl's store in West Des Moines, Iowa. Kohl's board has nixed a deal to be bought by Franchise Group, Friday, July 1, 2022, citing a poor retail environment caused by rising inflation that has consumers pulling back on spending. Wisconsin-based Kohl's was in exclusive talks with Franchise Group, the owner of Vitamin Shop and other retail outlets, on a deal worth about $8 billion. (AP Photo/Charlie Neibergall, File)

SILVER SPRING, Md. (AP) - The potential sale of the Kohl's department store chain has fallen apart in a shaky retail environment of rising inflation and consumer anxiety.

Kohl's entered exclusive talks early this month with Franchise Group, the owner of Vitamin Shop and other retail outlets, for a deal potentially worth about $8 billion.

"Given the environment and market volatility, the Board determined that it simply was not prudent to continue pursuing a deal," said Kohl's Chairman Pete Boneparth.

It was the second time this week that a major retailer retreated from a potential sale due to worsening economic conditions. Walgreen's said Thursday that it was giving up on its hopes of selling its Boots business in the UK.

"Kohl's decision to terminate acquisition talks with Franchise Group comes as no great surprise," said Neil Saunders, managing director of GlobalData.