Macy’s CEO Tony Spring will officially take the reins on Sunday as the storied retailer faces slowing sales growth and the threat of a takeover.
Mr. Spring, 58, rose through the ranks at the luxury brand’s sister company Bloomingdale’s and has been Macy’s next CEO since last March, when Jeff Gennett announced his plans to retire.
“I am excited to assume the role of CEO of Macy’s and bring my more than 30 years of nameplate experience to build on this strong foundation and lead the company forward,” Spring said in a statement. .
He’s stepping up at important times. The company announced plans to cut 2,300 employees, or 13% of its corporate workforce, at five of its 722 mall-based anchor stores in the U.S. amid a decline in both sales growth and foot traffic. announced that it plans to close.
Even more worrying are recent offers from two large investors, Arkhouse Management and Brigade Capital Management, which made a $5.8 billion bid to take Macy’s private last December. be.
Macy’s rejected the offer last month.
As the Post reported, another private equity firm, Sycamore Partners, is exploring a possible acquisition of the New York-based company.
Macy’s declined to comment, as did Sycamore, which owns numerous apparel brands including The Limited, Talbots, Ann Taylor and Southern department store chain Belk.
Macy’s prized real estate, including its huge flagship store in Herald Square, has sparked several acquisition plans in recent years, including one from Hudson’s Bay Co., which owns rival Saks Fifth Avenue.
Real estate investors Ark House and Brigade have threatened to take direct offers to shareholders.
One of Jennette’s final tasks was to inform Arkhouse and Brigade of concerns about Macy’s board of directors’ ability to finance the deal.
Mr. Gennette, 62, has been with the company for 40 years, including seven years in management.
Last quarter, Macy’s sales were $4.9 billion, down 7.1% year over year, and same-store sales were down 6.7%. At Bloomingdale’s, same-store sales fell 4.4% in the quarter, and the company’s digital sales fell 7%.
