Macy’s Board Ends Acquisition Talks With Arkhouse, Brigade

The Macy’s board of directors has unanimously decided to end acquisition talks with Arkhouse Management and Brigade Capital Management.

The decision follows more than seven months of engagement that included a due diligence process, Macy’s said in a Monday (July 15) press release.

“At this time, after careful review, we have concluded that Arkhouse and Brigade’s proposal lacks certainty of finance and does not deliver compelling value, notwithstanding the significant time, resources and information shared during this process,” Paul Varga, lead independent director of Macy’s, said in the release.

The board fully supports the retailer’s “A Bold New Chapter” strategy, seeing it as the best opportunity for value creation, Varga added.

Tony Spring, chairman and CEO of Macy’s, said in the release that the retailer remains focused on creating value for shareholders.

“While it remains early days, we are pleased that our initiatives have gained traction, reinforcing our belief that the company can return to sustainable, profitable growth, accelerate free cash flow generation and unlock shareholder value,” Spring said.

With “A Bold New Chapter,” Macy’s aims to strengthen the Macy’s nameplate, accelerate luxury growth, and simplify and modernize operations, according to the release.

So far, the company has found that its First 50 Macy’s nameplate stores are outperforming its other locations, per the release.

It was reported in March that Arkhouse and Brigade had bid $5.8 billion to take over Macy’s in December 2023 — an offer that the retailer rejected — and bid $6.6 billion in March.

In February, Macy’s said that it intended to close 150 stores by 2027 and focus on its remaining 350 locations, using digital communications to keep customers coming back when they no longer have their typical brick-and-mortar touchpoints.

“[As far as] digital demand recapture, we have stores in these markets beyond the stores we’re closing — not every market, but most markets,” Spring said at the time during an earnings call. “So, we’ll be looking at neighboring stores to capture that demand, as well as digital outreach to make sure that we lose as little as possible.”

As Macy’s closes its own-brand stores, the retailer intends to open more locations of its luxury subsidiaries, Bloomingdale’s and Bluemercury.