Arkhouse, Brigade Capital Raise Buyout Offer for Macy’s to $6.9 Billion, WSJ Reports

Shares of Macy’s saw a 1.1% rise in after-market trading following news that Arkhouse Management and Brigade Capital Management have raised their bid to purchase the iconic department store chain. The Wall Street Journal reported on Wednesday, citing insiders, that the new proposal values Macy’s at approximately $6.9 billion.

The details of the offer revealed that Arkhouse, which holds a 4.4% stake in Macy’s, proposed acquiring the remaining stock they do not own at a price of $24.80 each. This is an increase from their previous offer of $24 per share made in March. Initially, Arkhouse had raised their offer from $21 to $24 per share.

Neither Arkhouse Management, Brigade Capital, nor Macy’s responded to requests for comments from Reuters. Importantly, the latest bid represents a significant 43% premium to Macy’s closing price on December 8, when discussions about the deal first surfaced.

The improved offer comes on the heels of a recent proxy battle between Macy’s and Arkhouse Management. In April, this dispute led to Macy’s adding two of Arkhouse’s nominees, Richard Clark and Richard Markee, to its board. Subsequently, the retailer disclosed its engagement with Arkhouse and Brigade Capital regarding the revised buyout proposal.

Clark and Markee joined Macy’s finance committee, which, in addition to its usual duties, will also evaluate the buyout proposal from Arkhouse and Brigade.

This latest development underlines the shifting dynamics at Macy’s and is a key point of interest for stakeholders and analysts watching the retail sector closely.