Arkhouse and Brigade: Amidst the retail landscape’s evolution, a consortium led by Arkhouse Management and Brigade Capital has set its sights on taking Macy’s private, presenting a $5.8 billion offer. The proposal, submitted on December 1, suggests acquiring the remaining Macy’s shares at $21 each, a 20.76% premium over Friday’s closing price of $17.39. Arkhouse and Brigade, already substantial stakeholders through Arkhouse-managed funds, believe Macy‘s is undervalued in the public market.
The move underscores a growing trend in the retail sector, where traditional giants are reassessing their strategies. Macy’s, an iconic department store, has been grappling with shifting consumer behaviors and increased competition from e-commerce. The investor group, attracted by Macy’s substantial real estate portfolio, aims to capitalize on the retailer’s extensive assets.
Macy’s, which reported better-than-expected quarterly profits in November, has been implementing measures to streamline operations and enhance its attractiveness to investors. The company’s market capitalization hovers around $4.77 billion, with its shares experiencing a nearly 15.79% decline this year.
The proposed deal is not the first for Arkhouse, as the investor group submitted a $2.4 billion bid for Columbia Property Trust two years ago, albeit unsuccessfully. The potential acquisition of Macy’s, a larger and more complex undertaking, marks a significant move for the consortium.
While the details of Macy’s response remain undisclosed, the retailer’s board reportedly convened to deliberate on the offer. With ongoing changes in the retail landscape, this potential privatization bid adds another layer to Macy’s trajectory, signaling a transformative phase for the venerable department store.
Read More: Arkhouse and Brigade Capital’s Bold $5.8B Bid to Take Macy’s Private Signals a Retail Evolution