Investor group raises Macy’s buyout bid by nearly $1 billion

Arkhouse Management and Brigade Capital are raising their offer to buy Macy’s by almost $1 billion, in hopes of taking the department-store chain private.

In a statement Sunday, the investor group said it was increasing its bid to acquire Macy’s M, +3.27% to $24 a share, or about $6.6 billion, up from a bid of $21 a share, or about $5.8 billion, that Macy’s board rejected in January, saying at the time that it lacked “compelling value.”

Arkhouse and Brigade said their new offer is a 51.3% premium to Macy’s share price as of Nov. 30, 2023, when they submitted their original proposal. And they noted it’s a 33% premium to Macy’s stock price as of Friday, when it closed at $18.01 a share.

“We remain frustrated by the delay tactics adopted by Macy’s Board of Directors and its continued refusal to engage with our credible buyer group,” Arkhouse managing partners Gavriel Kahane and Jonathon Blackwell said in a statement. “Nonetheless, we are steadfast in our commitment to execute this transaction.”

In a statement Sunday, Macy’s confirmed it had received the offer and said it would “carefully review and evaluate the latest proposal consistent with the board’s fiduciary duties and in consultation with its financial and legal advisors.” A Macy’s spokesperson said there was no additional comment.

Macy’s announced a restructuring plan last week that includes closing 150 stores, including its iconic flagship store in downtown San Francisco. Separately, the company also announced fourth-quarter earnings that beat expectations.

“While the restructuring plan Macy’s unveiled last week failed to inspire investors, the fourth-quarter earnings and year-end results have given us further confidence in the long-term prospects of the company if redirected as a private company,” Kahane and Blackwell said Sunday.

Macy’s shares are down about 10% year to date, and have fallen 21% over the past 12 months, compared to the S&P 500’s SPX 8% gain in 2024 and 27% gain over the past year.