Jan 21, 2024 - Business

Macy's rejects $5.8 billion takeover offer

 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."

Go deeper: Read more in Monday's Axios Pro Rata newsletter

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