ArkHouse Management and its partner Brigade Capital Management on Dec. 1 made a $5.8 billion offer to take department store chain Macy's private, ArkHouse confirmed on Sunday.
ArkHouse Management, an investment firm specializing in real estate, and Brigade Capital Management, a global asset manager, have submitted a proposal to acquire Macy's shares they do not already own at a price of $21 per share, according to a statement from ArkHouse. .
The investor group said it believes there is “potential for a significant increase from the original proposal, provided access to the necessary due diligence is granted.”
Macy's did not immediately respond to Reuters' request for comment.
Reuters earlier reported that a group of investors led by Arkhouse had submitted a proposal to take Macy's private at $21 per share.
A group of investors led by Arkhouse & Brigade Capital Management “has a significant stake in Macy's through funds managed by Arkhouse,” Arkhouse said.
The companies have “informally discussed” the deal with Macy's in recent weeks, the company said.
“As we have indicated, we encourage the company to respond this week without further delaying substantive discussions,” Ark House said in a statement.
Arkhouse said investment bank Jefferies, which is acting as financial advisor to the acquisition group, “has provided us with a very confident letter confirming our ability to raise the necessary financing for the transaction.”
Macy's announced last week that it would cut 2,350 jobs and close five stores in an effort to streamline its operations.
The department store operator reported quarterly profits in November that shattered analysts' expectations for lower inventories and strong demand for beauty products, as efforts to trim inventories from 2022 highs finally paid off. suggested that.
