Macy’s has rejected a $5.8 billion takeover bid from investment firm Arkhouse Management and its partner Brigade Capital just one month later, the company is facing a proxy fight on its board of directors after Arkhouse Management nominated nine candidates for its board.
On Tuesday, Arkhouse announced its nominees, including executives with retail, real estate, and capital markets experience, to the department store’s 14-member board. The company also revealed that it provided additional financing details for the 50% equity portion of the transaction, including the names of highly regarded equity partners with over $75 billion in assets under management.
Macy’s parent company Macy’s, Inc., which also owns Bloomingdale’s, has suffered from weak demand in recent years as customers cut back on spending due to rising inflation and higher borrowing costs. On the other hand, however, the company’s November quarterly results exceeded market expectations thanks to inventory reduction efforts and strong demand for beauty products.
In a statement, Arkhouse commented, “The Board’s history of poor performance and continued refusal to engage constructively with our credible and motivated buyer group have led us to the decision to nominate a slate of highly qualified, independent directors to reconstitute Macy’s Board.”
Macy’s evaluated Arkhouse’s board nominees and said it is committed to “long-term value creation.”
The company, which has yet to set a date for its 2024 annual meeting, saw its stock price fall 1.4% on January 20, and over the past year, its share price has fallen about 7%.