Macy’s Board Ends Talks to Acquire Arkhouse and Brigade

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

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

“After careful consideration, we have concluded that Arkhouse and Brigade’s proposal does not provide certainty of financing and does not offer compelling value, despite the significant amount of time, resources and information provided during this process,” Paul Varga, Macy’s lead independent director, said in a press release.

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

Tony Spring, chairman and CEO of Macy’s, said in a statement that the retailer remains focused on creating shareholder value.

“While this is 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.

According to a press release, through the “A Bold New Chapter” campaign, Macy’s aims to strengthen its position in the marketplace, accelerate the growth of the luxury goods industry and simplify and modernize its operations.

According to the release, so far the First 50 Macy’s chain of stores has achieved better results than the rest of its stores.

In March, it was reported that Arkhouse and Brigade had offered $5.8 billion to acquire Macy’s in December 2023 — an offer the retailer rejected — and in March, they offered $6.6 billion.

In February, Macy’s said it plans to close 150 stores by 2027 and focus on its remaining 350 locations, using digital communications to encourage customers to return when they can no longer visit its traditional brick-and-mortar stores.

“(In terms of) digital demand recovery, we have stores in those markets outside of the stores that we’re closing — not every market, but most markets,” Spring said on an earnings conference call at the time. “So we’re going to be looking at adjacent stores to capture that demand, and also in terms of digital footprint to make sure that we lose as little as possible.”

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