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Macy's settles with activist investor Arkhouse

Macy's logo appears on black signage.

Photo: Igor Golovniov/SOPA Images/LightRocket via Getty Images

Macy's reached an agreement with activist investor Arkhouse Capital Management, which will withdraw its director nominees.

Why it matters: It ends a contentious proxy fight between the department store chain and the investor.

The latest: It also settles a lawsuit Tuesday from an institutional shareholder that accused the Macy's board of having "weaponized" its debt agreements as part of its takeover defense.

Catch up quick: Arkhouse had nominated a slate of directors to the Macy's board, with shareholders scheduled to vote on May 17.

  • Per Wednesday morning's announcement, Macy's will add two of the Arkhouse nominees to its board, while Arkhouse will withdraw the rest.
  • Macy's also is immediately implementing several other board changes, which had been previously announced, and said it's continuing to engage with Arkhouse and partner Brigade Capital Management about the takeover offer.

The bottom line: A takeover still could happen, but bringing the activists inside the house makes it less likely.

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