Macy’s shares recovered slightly on Thursday following a report published in the New York Post indicating that the retailer is the focus of another takeover bid previously reported in December.
In December, Macy’s formally rejected a $5.8 billion bid from Arkhouse Management Co. LP and hedge fund Brigade Capital Management LP on January 21. Shares headed south after the disclosure, erasing gains Macy’s had delivered since last fall when rumors surfaced regarding a buyout had started to ramp up.
Multiple media reports over the two-plus weeks also suggested that the retailer planned to cut 2,350 jobs, or 3.5 percent of its workforce, and shutter five stores.
According to the New York Post report, a bid from private equity group Sycamore Partners is back on the front burner, suggesting, once again, that the group is considering a potential bid to acquire the department store chain.
The Post, citing sources, said that Sycamore Partners, the owner of retail brands Ann Taylor and Talbots, among others, had been negotiating with Macy’s since December 2023. WWD reported as early as December 16 that Sycamore was pitching a deal. The Wall Street Journal first reported the initial bid from Arkhouse and Brigade on or about December 11, 2023. The Post also indicated that some industry insiders believed Sycamore had the financial backing to secure the deal.
Financing, or the lack of a solid plan to secure it, was called out as the primary reason Macy’s rejected the Arkhouse and Brigade overture.
In its report today, Investing.com said that Macy’s had been facing heavy pressure from activist investors to explore a sale as its brick-and-mortar locations struggle to keep up with digital competitors.
Macy’s shares (NYSE:M) were up 3.75 percent Thursday, closing at $18.82 a share.
In its rejection letter released last Sunday, Macy’s indicated that Arkhouse and Brigade had previously proposed buying the shares of Macy’s they do not already own for $21 a share.
Image courtesy of Macy’s
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For more SGB Media coverage on Macy’s, click the articles below.
Macy’s Rejects $5.8 Billion Buyout Offer, Citing Financing Concerns
