Arkhouse Management and Brigade Capital Management have increased their bid to acquire Macy's, now valuing the deal at $6.6 billion. The investment firms announced a new all-cash proposal of $24 per share, up from their previous offer of $21 per share. Macy's had rejected the initial $5.8 billion deal in January, citing concerns about the financing plan and a perceived lack of compelling value.
In a joint statement, Arkhouse managing partners expressed frustration with Macy's board for delaying tactics and refusal to engage. They reiterated their commitment to completing the transaction and indicated a willingness to raise the purchase price further, pending customary due diligence.
Macy's confirmed receipt of the revised proposal, describing it as unsolicited and non-binding. The company stated that its board would carefully review the offer before making any further comments. Last month, Arkhouse nominated nine individuals for Macy's board, prompting a request for additional financing information from the retailer.
Despite providing the requested details, Arkhouse's request for a deadline extension was denied, leading to the nomination of directors. In response to financial challenges, Macy's announced plans to close 150 namesake stores over the next three years, with 50 closures expected by year-end. The department store chain also revealed intentions to enhance its remaining 350 stores as part of restructuring efforts.
