Arkhouse Management and Brigade Capital Management have increased their bid to acquire Macy’s, now offering $6.6 billion in an all-cash deal. The revised proposal values each remaining share at $24, up from the previous offer of $21 per share, which Macy’s rejected in January.
Macy’s cited concerns about the financing plan and a perceived lack of compelling value in its rejection. Despite this, Arkhouse and Brigade remain committed to the acquisition, expressing frustration with Macy’s board for delaying tactics and refusal to engage.
The managing partners of Arkhouse stated their willingness to address the company’s concerns and potentially increase the purchase price further, contingent on customary due diligence.
Macy’s confirmed receipt of the revised proposal, stating that its board would carefully review the offer before making any further comments.
Arkhouse recently moved to nominate nine individuals for Macy’s board, a move that Macy’s responded to by seeking additional financing information. However, Arkhouse instead requested a 10-day extension for the director nomination window.
In response, Arkhouse stated that it had already provided additional financing details and sought the extension to continue engaging privately. When this request was denied, Arkhouse proceeded to nominate directors.
Macy’s announced plans on Tuesday to close 150 of its namesake stores over the next three years, with 50 closures expected by year-end. This decision follows a fourth-quarter loss and declining sales. As part of its restructuring efforts, Macy’s also plans to upgrade its remaining 350 stores.