Kohl’s shares dropped more than 10% Wednesday afternoon.
The owner of The Vitamin Shoppe is actively considering whether or not buying Kohl’s is the best use case of Franchise Group’s capital, said the person, who asked to remain anonymous since the conversations are private and ongoing.
Franchise Group has lined up financing with lenders, the person added. But the company, run by Chief Executive Officer Brian Kahn, is weighing a lower a price now as retailers grapple with bloated inventory as consumers balk at higher prices.
Earlier this month, Franchise Group proposed a bid of $60 per share to acquire Kohl’s at a roughly $8 billion valuation. The two companies then entered a three-week window during which they can firm up any due diligence and final financing arrangements. That ends this weekend.
Kohl’s shares opened Wednesday at $41.52 and traded as low as $34.64 in late May.
Representatives for Kohl’s and Franchise Group didn’t immediately respond to CNBC’s requests for comment.
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