Arkhouse Management and Brigade Capital Management have offered to buy Macy’s for $5.8 billion, people familiar with the matter told CNBC on Sunday.
The offer values the retailer at $21 per share, according to the sources. Macy’s closed at just over $17 a share on Friday, down roughly 17% since the start of the year. The company’s shares closed nearly 20% higher on Monday.
Arkhouse, a firm that primarily targets real estate investment, and Brigade Capital, an asset management firm, would be willing to offer a higher bid based on due diligence, the sources said. The group would already be paying a premium for the department store, which has struggled to keep up with online competitors.
Macy’s has made several efforts to draw customers back to its brick-and-mortar chains. In October, it announced 30 new store locations at strip malls as it tried to pivot away from the traditional shopping mall.
Despite the turnaround efforts, Macy’s sales have slumped, declining 7% year over year in the third quarter.
People wait in line outside Macy’s before opening on “Black Friday” in New York City on November 24, 2023. The retail sector’s efforts to entice holiday gift purchases builds to a crescendo this weekend with the annual “Black Friday” shopping day followed by the newer “Cyber Monday.” (Photo by Yuki IWAMURA / AFP) (Photo by YUKI IWAMURA/AFP via Getty Images)
Yuki Iwamura | Afp | Getty Images
The retailer expressed optimism after its most recent quarter beat Wall Street’s expectations. By the numbers, that performance improvement was driven mostly by sales at brands that Macy’s owns, like Bloomingdale’s and Bluemercury, not the namesake Macy’s chain.
Macy’s has become an acquisition target as it grapples with sagging sales and competition not just from online upstarts, but also from brands that would rather sell their products directly to consumers than wholesale through a department store. Kohl’s faced a similar takeover bid in 2022 when it received multiple acquisition…
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