Macy’s Inc. said Sunday it has rejected an unsolicited bid by Arkhouse Management and Brigade Capital Management to take the department-store chain private in a $5.8 billion deal, citing concerns over financing.
In a statement, Macy’s
said Arkhouse and Brigade failed to address the board’s concerns over their ability to finance the deal, and found a “lack of compelling value in their non-binding proposal.”
“Following careful consideration and efforts to gather additional information from Arkhouse and Brigade, the board determined that Arkhouse and Brigade’s proposal is not actionable and that it fails to provide compelling value to Macy’s, Inc. shareholders,” Macy’s Chief Executive Jeff Gennette said in a statement. “We continue to be open to opportunities that are in the best interests of the company and all of our shareholders.”
Earlier Sunday, Arkhouse confirmed that it and Brigade had submitted a proposal to buy Macy’s for $21 a share on Dec. 1, and threatened to bring the matter directly to Macy’s shareholders if talks do not pick up this week. “We see the potential for a meaningful increase to our original proposal if we are granted access to the necessary due diligence,” Arkhouse added.
Macy’s shares jumped after the buyout bid was first reported in December, but have since lost some of those gains.
Last week, Macy’s said it will lay off 13% of its corporate staff — roughly 2,350 jobs — and close five stores in an effort to cut costs.
Macy’s stock is down about 23% over the past 12 months, compared to the S&P 500’s