By
Bloomberg
Published
Jan 22, 2024
Macy’s Inc. said Sunday that it wasn’t interested in a bid from Arkhouse Management Co. and Brigade Capital Management to take over the retailer, saying the offer lacked “compelling value.”
The investors made a $5.8 billion, or $21 a share, offer for the company last month and Arkhouse earlier Sunday threatened to take its offer to shareholders if the department store chain doesn’t step up negotiations. The offer represents about a 19% premium to Macy’s closing price on Friday.
Macy’s board has determined it won’t “enter into a non-disclosure agreement or provide any due diligence information to Arkhouse and Brigade,” the company said in a statement after Arkhouse issued its statement. It said that information provided by the investors failed to address concerns over their ability to finance the transaction.
Arkhouse earlier said that advisers from all parties had held initial conversations and financing was discussed. It urged Macy’s to “engage expeditiously in good faith discussions,” pointing out that Macy’s shares had retreated from the high it reached after the offer was unveiled.
“We are highly motivated to consummate an acquisition of Macy’s and are prepared to pursue all necessary steps, including direct engagement with stockholders, to achieve this goal,” the investor said. “We encourage the company to respond to us this week.”
Read more: Macy’s $5.8 Billion Buyout Bid Follows Litany of Retail Misfires
Macy’s has struggled to compete as shopper preference has shifted away from department stores, with online retailers making inroads in key merchandise categories such as apparel and home goods.
The New York-based company said Thursday it would lay off about 3.5% of its workforce ahead of the departure of longtime Chief Executive Officer Jeff Gennette. Gennette said in the statement Sunday Macy’s continues “to be open to opportunities that are in the best interests of the company and all of our shareholders.”