On Sunday, the activist investor group attempting to acquire Macy’s put pressure on the department store operator by increasing its bid and revealing more information regarding its financing arrangements.
The store is now valued at $6.6 billion, according to a news release from Arkhouse Management and Brigade Capital Management, who are offering $24 per share. The current offer is more than the $21 per share they previously made and represents a 33.3 percent premium over Macy’s Friday closing share price of $18.01.
Arkhouse and Brigade listed Fortress Investment Group and One Investment Management as additional investors they had brought on as equity partners. Additionally, Arkhouse and Brigade stated that they had “identified large global institutional financing sources” that “represent 100 percent of the capital required to buy the shares in Macy’s we do not already own,” presumably in answer to Macy’s inquiries regarding the company’s funding.
Since December, when the investment group made an offer of $5.8 billion to take Macy’s private, the retailer has been under pressure from the group. Arkhouse threatened to take its offer to shareholders if the shop didn’t start disclosing confidential information. Since then, the investor has put up nine board nominations for Macy’s.
On Sunday, Macy’s declared that it will “carefully review and evaluate” the most recent proposal.
The company released a statement saying, “The Macy’s Inc. board is committed to continuing to take actions that it believes are in the best interests of the company and all Macy’s Inc. shareholders. The board has a proven track record of evaluating a broad range of options to create shareholder value.”
The store has been making an effort to maintain focus on its own plan for growing the company.
Macy’s unveiled a plan last week that would fundamentally alter the organization. Over a three-year period, it announced that it would close 150 of its flagship shops and add more outlets for its luxury businesses, Bloomingdale’s and Bluemercury.
“My goal is to close the deal with the company before they begin closing stores,” Arkhouse managing partner Gavriel Kahane stated in an interview.The “proposal presents the best path forward for Macy’s shareholders by allowing them to benefit from the significant unrealized value of the company,” according to Brigade’s partner and head of special situations Matt Perkal.
As enclosed malls collapse, Macy’s has struggled as a department store to attract customers who are increasingly making purchases online. For the last several quarters, Macy’s has seen a decline in sales.The company’s recent CEO, Tony Spring, formerly of Bloomingdale’s, has said that Macy’s isn’t a particularly enjoyable place to shop. Consumers frequently find themselves in disorganized establishments with shoddy clothing displays and trouble locating employees. By the end of 2026, the retailer anticipated to have 350 sites left, and the money made from its closures would go toward the surviving shops.
According to Mr. Kahane, investors would concentrate on turning around the department store business if the company were made private, since he said that this would be a simpler task for a private retailer. Additionally, he refuted rumors circulated by analysts that he was just interested in the retailer’s real estate.
Mr. Kahane stated, “So it’s obvious that we’re here for the real estate right.” “We are here because we believe their balance sheet contains a significant amount of real estate, and that real estate is valuable due to the presence of a quality tenant.”
He downplayed rumors circulated by a few retail analysts, claiming that the investors were merely waiting for a better offer to come along.
