Retail giant Macy’s revealed on Monday it will stop engaging in talks with Arkhouse Management and Brigade Capital Management about a potential acquisition.
Macy’s said on Monday that it will stop engaging in talks with Arkhouse Management and Brigade Capital Management about a potential buyout.
The retailer said the latest proposal from the pair of investment firms "remains non-actionable and fails to provide compelling value" to Macy’s shareholders. It will instead continue pursuing its revitalization plan.
Arkhouse and Brigade offered in late June to buy all outstanding Macy’s shares for $24.80 each. The two firms also provided Macy’s with financing papers that the retailer argued were "insufficient to give the board confidence that a fully committed, financed and viable offer could be attained within any reasonable period of time – and necessitated bearing an unacceptable lack of certainty for the Company and its shareholders."
The retailer said its board’s decision to end the discussions was unanimous.
Arkhouse Management and Brigade Capital Management did not respond to FOX Business' requests for comment.
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Arkhouse and Brigade had sent Macy’s a $24-per-share cash bid in March. That proposal had represented what the two firms described at the time as "an increase of 14.3%" from another offer that Macy’s rejected in January on similar grounds.
Arkhouse, while announcing its March bid, argued taking the retailer private "would provide Macy’s shareholders with significant value and immediate liquidity."
Paul Varga, lead independent director of Macy’s, said Monday the retailer’s board "believe[s]" the "A Bold New Chapter" plan launched by the company in February "provides the best opportunity for value creation."
MACY'S TO CLOSE 150 STORES BY 2026, OPEN NEW BLOOMINGDALE'S, BLUEMERCURY LOCATIONS
Under the initiative, the retailer said it would shutter about 150 "underproductive" stores as well as focus on investing in the Macy’s locations it will maintain and "continued expansion" of small-format stores. It also aims to further embrace its more luxurious Bloomingdale’s and Bluemercury brands with additional stores.
Macy’s said Monday it will update investors on "progress underway" on the "A Bold New Chapter" initiative when it publishes its second quarter financial results in August.
The company's shares were down more than 12% in midday trading on Monday.
