Jan 21, 2024 - Business

Macy's rejects $5.8 billion takeover offer

Rebecca Falconer

People wait to enter the Macy's store on Herald Square on January 19, 2024 in New York City. — The Macy's store on Herald Square in New York City. Photo: Michael M. Santiago/Getty Images

Macy's announced Sunday it had rejected a $5.8 billion take-private offer from Arkhouse Management and Brigade Capital Management, citing a "lack of compelling value."

Why it matters: Macy's said last week it would close five more stores and cut its workforce by 3.5% despite a strong third quarter relative to its past performance.

Driving the news: Both Macy's and Arkhouse confirmed Sunday that the investor group submitted a Dec. 1 proposal to acquire all outstanding stocks of the retailer it didn't already own for $21 per share.

What they're saying: "The Board has determined not to enter into a non-disclosure agreement or provide any due diligence information to Arkhouse and Brigade," Macy's said in a statement.

Meanwhile, Arkhouse Management said in a statement that the investment group sees "a potential for a meaningful increase to the original proposal if we are granted access to the necessary due diligence."

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Macy's rejects $5.8 billion takeover offer

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