Arkhouse Management and Brigade Capital Management have proposed a buyout of Macy's Inc. for $5.8 billion, according to knowledgeable people.The offer is pricing the retailer at $21 per share, as opposed to the stock's latest close of a bit over $17 per share.Sales at Macy's have been in a slump for the previous year as the traditional retailer has had difficulty competing with digital rivals.
Arkhouse Management and Brigade Capital Management have proposed a $5.8 billion bid to acquire Macy's Inc., according to sources close to the matter quoted by CNBC on Sunday. If approved, this offer would value Macy's at $21 per share - an amount significantly higher than the company's stock price of $17 on Friday, which has dropped 17% since the start of the year. The investment firms expressed optimism that a higher bid could be presented pending due diligence. Despite numerous efforts to bolster its brick-and-mortar presence, Macy's sales have been steadily shrinking and are currently 7% lower than a year ago. The recent beat of Wall Street estimates was mainly attributable to retail brands owned by Macy's, such as Bloomingdale's and Bluemercury, and not the flagship Macy's chain. With the surging competition from direct-to-consumer brands, as well as e-commerce sites, Macy's has become a prime acquisition target, similar to Kohl's in 2022 when the department store company received multiple offers valuing it lower than it had hoped. As unstable interest rates and rising inflation have taken a toll on consumer spending, the success of the holiday season is unsure. However, Black Friday and Cyber Monday showed that the online shopping sector is still seeing considerable activity. Neither Macy's, Arkhouse, nor Brigade commented on the reported offer, which was first reported by The Wall Street Journal. This story is still developing.
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