Macy’s rejects $5.8 bn takeover bid from Arkhouse, citing financing & valuation concerns
The R.H. Macy and Co.flagship department store
In a decisive move, Macy’s has rebuffed the $5.8 billion proposal from Arkhouse Management and Brigade Capital Management to take the retail giant private. The bid, which aimed to acquire the shares Macy’s doesn’t already own at $21 per share, was rejected on Sunday.
Macy’s cited apprehensions over deal financing and valuation as the primary reasons for turning down the offer, stating, “The Board has determined not to enter into a non-disclosure agreement or provide any due diligence information to Arkhouse and Brigade,” and highlighting “a lack of compelling value” in the proposal. The department store operator expressed particular reservations about Arkhouse and Brigade’s ability to finance the proposed transaction, asserting that the furnished information failed to address these concerns.
Arkhouse Management, specialising in real estate investments, and Brigade Capital Management, a global asset manager, emphasised the potential for an augmented proposal should they be granted access to necessary due diligence.
Despite the rejection, Macy’s acknowledged the significant stake the investor group holds in the company through Arkhouse-managed funds. Jefferies, acting as the financial adviser for the buyout group, issued a highly confident letter supporting their capability to raise the required funds for the transaction.
The bid by Arkhouse and Brigade has brought attention to the undervaluation of Macy’s concerning its real estate. Analysts estimate the company's real estate to be worth between $7.5 billion to $11.6 billion, shedding light on the potential value yet to be unlocked. Macy’s, which owns 316 of its 722 total stores as of January, is currently navigating a challenging landscape.
Last week, the company announced a strategic streamlining initiative, involving the elimination of 2,350 jobs and the closure of five stores. This move is indicative of the broader struggle faced by legacy department stores in competing against younger, online rivals with smaller physical footprints.
)
Nearly Rs 29 crore cash, 15 kg gold found at ex-bus driver's house in West Bengal
&im=FitAndFill=(700,400))
Why are iPhones so expensive compared to Android phones?
)
‘US is locked and loaded’: Trump calls off Iran attack but sets THESE conditions
)
Who is Ruchika Singh, booked for using foul language against PM Modi at Jantar Mantar protests?
)
Shehzad Poonawalla, BJP's national spokesperson quits politics? Here's what sparked social media buzz
)
NEET Protests riddled with misinformation? Delhi Police blocks 480 Pakistan-based handles spreading 'fake news' since Operation Sindoor
)
'I was almost trafficked in Paris,' says Australian woman, shares terrifying ordeal - 'I am on the black market'
)
India avoids higher US tariff, secures lower 10% rate. Here's how
)
Massive explosion at Moscow restaurant kills at least 3; woman suspected of carrying bomb
)
Ariana Grande's Petal video fuels debate as fans voice concern over her appearance
)
Kim Kardashian shares sweet moment with boyfriend Lewis Hamilton during summer vacation
)
Salman Khan enters Alliance to support brother, Sohail, netizens hail, 'tomorrow’s episode is going to be MASSIVE'
&im=FitAndFill=(700,400))
Meet top 5 openers with fastest ODI centuries, check who tops list
)
Mysterious structures uncovered beneath the Amazon show millions of humans once lived here
)
Delhi Consumer Court fines Indian Railways Rs 25,000 for making RAC passengers share one blanket
)
60,000 migrants from Morocco flood Spain's Ceuta, EU calls influx unacceptable, Trump warns US
)
More than 100 Israeli soldiers walk out of base, chant slogans in an 'act of rebellion' | Watch
)
Pakistan avalanche: Nepali mountaineer Nirmal Purja confirmed dead
)
Have 7,000 Karnataka students tested positive for HIV? Here's the truth
)
The Royals enter the Doctor Who universe: King Charles and Queen Camilla beam into Commonwealth Games in TARDIS
)
Trump says Iranian school bombing photos could be AI-generated - 'I don’t think...'
)
Commonwealth Games 2026 Day 11: India's full schedule, medal events and match timings
)
US offers $15mn reward to dismantle alleged IRGC drone funding network
)
At least 3 killed in mass shooting at Idaho restaurant, shocking video of gunman open firing with AR-style rifle surfaces
&im=FitAndFill=(700,400))
Meet the next gen of South Cinema: From Rajinikanth's grandson to CM Vijay's son, star kids ready for debut
)
German anatomist 'Dr Death's' family to grant his creepy last wish
)
Hrithik Roshan reacts to 'sorry Hrithik' trend, Kangana Ranaut slams him, mentions Saba Azad: 'You are in a committed relationship'
)
Indian govt clarifies foodgrain use for ethanol production, says 'E20 saved ₹30/litre on petrol prices' during global oil shock
)
‘Satanic’ chainsaw-wielding rescue bot leaves internet divided: ‘Those eyes are horrifying’
)
Buying Russian oil could cost India dearly? MEA breaks silence on US 100% tariff bill
)
'Delimitation designed to disenfranchise Tamil Nadu': Rahul Gandhi urges parties to oppose Bill
)
Arunachal CM Pema Khandu ranks India's 4th richest CM, wealthiest in Northeast: ADR report
&im=FitAndFill=(700,400))
Meet top 5 batters in latest ICC ODI rankings 2026 - check who sits at the top
&im=FitAndFill=(700,400))
'Fifth-generation fighters': Can the S-400 shoot down an F-35?
)
Lift accident? Maintenance, builders & makers are ALL liable now, rules Supreme Court: 3 major regulations | WION Decodes
Investment bankers and analysts had previously suggested that while a deal for Macy’s with Arkhouse and Brigade might be unlikely, the bid could prompt the company to explore options for unlocking additional value.
(With inputs from Reuters)