Macy’s has received a $5.8B acquisition proposal from the investor group Arkhouse Management and Brigade Capital Management|Jpellgen|CC BY-NC-ND 2.0
Arkhouse Management and Brigade Capital Management have jointly offered a bid to privatize Macy’s, valuing the department store at $5.8 billion—exceeding its current market assessment by over $1 billion, reports The Wall Street Journal.
The proposal submitted on December 1 values the retail giant at $21 per share, surpassing the current closing valuation of $17.39 a share.
Once reaching its stock peak at $70 per share in 2015, Macy’s, overseeing nearly 500 department stores, including Bloomingdale’s, witnessed a revenue decline from over $28 billion in 2014 to $24.4 billion in the last fiscal year.
The investor group, which already holds a significant stake in Macy’s via Arkshousr-managed funds, had discussions with the retailer’s board regarding the offer. However, Macy’s stance on the proposal remains undisclosed.
Despite this uncertainty, its cultural impact endures through iconic events like the Macy’s Thanksgiving Day Parade and extravagant seasonal displays in its New York City stores.
Coinciding with the holiday shopping rush, the bid aligns with CEO Jeff Gennette’s upcoming retirement in February, passing the torch to Tony Spring.