Macy’s ends talks to go private with Arkhouse and Brigade for $6.9B

Macy’s has decided to end negotiations with activist investors Arkhouse Management and Brigade Capital, citing a lack of funding to acquire the world’s largest department store. The decision was announced by Macy’s on Monday.

In a statement, Macy’s board stated, “The Macy’s board has unanimously determined to terminate discussion with Arkhouse and Brigade that have failed to lead to an actionable proposal with certainty of financing at a compelling value.”

The companies had entered into exclusive discussions in March, with Arkhouse and Brigade increasing their offer to $24 per share from $21 in late 2023, with plans to go even higher after further due diligence.

Most recently in June, the investors offered a purchase price of $24.80 per share in cash – a deal valuing the iconic chain at $6.9 billion that Macy’s board said was “not compelling.”

Macy’s shares were down over 15% on Monday morning, trading at $16.

Brigade and Arkhouse have not responded to requests for comment.

Macy’s stated that it provided “thousands of documents with a level of detail that went well beyond what is customarily required to obtain financing for a public company acquisition,” and the offer presented on June 26 was deemed “unacceptable.”

Macy’s will refocus on its strategic plan, which includes store closures, to enhance sales and profits, according to the company.