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Macy’s said Monday it was halting talks with Arkhouse Management and Brigade Capital Management about a possible acquisition.
The company said the latest proposal from the two investment firms “remains unviable and fails to deliver compelling value to Macy’s shareholders.” It will instead continue to pursue a turnaround plan.
Arkhouse and Brigade offered to acquire all of Macy’s outstanding stock for $24.80 per share in late June. The companies also provided Macy’s with loan documents, but Macy’s argued that the offers were “insufficient to provide the Board with confidence that sufficient financing would be secured and that a viable proposal could be achieved within a reasonable time frame, and would subject the Company and its stockholders to unacceptable uncertainty.”
The Macy’s corporate logo is displayed at a Macy’s store in Herald Square on January 19, 2024 in New York City. (Michael M. Santiago/Getty Images/Getty Images)
The company said the board’s decision to end the talks was unanimous.
Arkhouse Management and Brigade Capital Management did not respond to FOX Business’ requests for comment.
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Arkhouse and Brigade made a $24 per share cash offer to Macy’s in March that the companies described at the time as a “14.3 percent increase” over a separate offer that Macy’s rejected in January for similar reasons.
| Ticker | safety | last | change | change % |
|---|---|---|---|---|
| Ma | Macy’s Inc. | 16.77 | -2.33 | -12.20% |
When announcing its proposed acquisition in March, Arkhouse argued that taking the retailer private would “create significant value and immediate liquidity for Macy’s shareholders.”
Shoppers leave Macy’s in Union Square on November 24, 2023 in San Francisco, California. (Ethan Swope/Getty Images/Getty Images)
Macy’s lead independent director Paul Varga said Monday that the retailer’s board “[s]”The company’s ‘Bold New Chapter’ plan, which it launched in February, offers the perfect opportunity for value creation.”
Macy’s to close 150 stores by 2026, open new Bloomingdale’s and Bluemercury stores
Under the plan, Macy’s said it would close about 150 “less productive” stores and focus on investing in the Macy’s stores it will keep and the “continued expansion” of smaller stores. It also aims to add more stores and further strengthen its more upscale Bloomingdale’s and Bluemercury brands.
A window display was photographed at Macy’s on G Street NW in Washington, DC on Friday, April 24, 2020. (Tom Williams/CQ-Roll Call, Inc via Getty Images/Getty Images)
Macy’s said Monday that it will update investors on its “progress” on its “Bold New Chapter” initiative when it reports second-quarter financial results in August.
The company’s shares were down more than 12% in midday trading on Monday.
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