Macy’s Inc. has announced its rejection of an unsolicited bid by Arkhouse Management and Brigade Capital Management to take the department-store chain private in a $5.8 billion deal. The company cites concerns over financing as the reason for this decision.
In a statement, Macy’s expressed that the offer presented by Arkhouse and Brigade does not address the board’s concerns regarding financing and lacks compelling value. Macy’s Chief Executive Jeff Gennette stated, “Following careful consideration and efforts to gather additional information from Arkhouse and Brigade, the board determined that their proposal is not actionable and fails to provide compelling value to Macy’s, Inc. shareholders. We remain open to opportunities that align with the best interests of the company and our shareholders.”
Arkhouse confirmed earlier that they had submitted a proposal on December 1st to acquire Macy’s for $21 per share. They have also indicated that they could potentially increase their offer upon gaining access to the necessary due diligence.
Despite initial reports causing Macy’s shares to surge, the stock has since experienced a decline. In an effort to reduce costs, Macy’s recently announced plans to lay off approximately 2,350 employees, which accounts for 13% of its corporate staff, and close five stores.
Over the past year, Macy’s stock has seen a decrease of about 23% compared to the S&P 500’s gain of 22%.