Arkhouse Management and Brigade Capital Management have made an offer to acquire Macy’s Inc. for $5.8 billion, valuing the retailer at $21 per share, according to sources familiar with the matter. This offer represents a premium for Macy’s, which has been facing challenges in the retail landscape and has seen its sales decline. Despite efforts to revitalize its brick-and-mortar stores, Macy’s has struggled to keep up with online competitors. The company recently announced plans to open 30 new store locations at strip malls in an attempt to shift away from traditional shopping malls.
The proposed acquisition by Arkhouse, a real estate investment-focused firm, and Brigade Capital, an asset management firm, signals potential changes for Macy’s if the deal proceeds. The offer includes the possibility of a higher bid based on further due diligence. While Macy’s has seen some positive performance in brands it owns, such as Bloomingdale’s and Bluemercury, the namesake Macy’s chain has faced challenges.
The retail sector, in general, has been navigating headwinds, with interest rate volatility and high inflation affecting consumer spending. The online shopping sector has demonstrated resilience, with robust consumer spending during events like Black Friday and Cyber Monday. However, uncertainties remain about the overall strength of the holiday season, given cautious outlooks from retailers.
Macy’s has become a target for acquisition amid its sales struggles and increased competition, not only from online platforms but also from brands opting for direct-to-consumer sales. Similar to Kohl’s, which faced takeover bids in 2022, Macy’s is now contending with acquisition offers. The potential acquisition could reshape Macy’s future and its ability to navigate the evolving retail landscape.
Both Arkhouse and Macy’s have declined to comment on the matter, while Brigade Capital has not provided an immediate response. The buyout offer was initially reported by The Wall Street Journal.
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