NEW YORK (AP) — Macy’s is terminating buyout talks with Arkhouse and Brigade, citing the lack of certainty over financing.
Takeover talks have been ongoing for months.
In March Arkhouse Management and Brigade Capital Management raised their offer to acquire Macy’s in a deal then valued at $6.6 billion, or $24 per share cash, up from a earlier offer of $21 per share.
Macy’s shares tumbled 14.4% in premarket trading, to $16.35.
And in April, Macy’s named two independent directors to its board that were pushed by activist investor Arkhouse, ending a proxy fight that aimed to replace most of the board and to acquire the iconic chain.
Macy’s said Monday it will focus on its own turnaround efforts. That previously unveiled plan includes closing 150 Macy’s stores over the next three years and upgrading the remaining 350 stores.
The overhaul includes adding more salespeople to fitting areas and shoe departments. It’s also pivoting more to luxury sales, which have held up better overall. Macy’s said it will open 15 higher end Bloomingdale’s stores and 30 luxury Bluemercury cosmetics locations to cater to customers seeking higher end services and goods.
The iconic New York department store chain is also accelerating the expansion of its new, small-format stores, opening 30 small-format locations through the fall of 2025. Macy’s believes the smaller stores are more convenient for customers.
