What: Arkhouse Management and Brigade Capital Management have raised their buyout offer for Macy’s to USD 24 per share, valuing the company at USD 6.6 billion, which is a 14% increase from their previous proposal.

Why it is important: This revised offer highlights the ongoing pressure Macy's faces from investors to accept a buyout amidst challenges competing with online retailers and smaller physical stores. It also reflects the broader struggles of legacy department stores in adapting to the rapidly changing retail landscape.

Investment firms Arkhouse Management and Brigade Capital Management have increased their offer to purchase Macy's, proposing USD 24 per share, up from their previous bid of USD 21 per share. This new offer represents a 33% premium over Macy's last closing price of USD 18.01, bringing the total valuation of the company to approximately USD 6.6 billion. The revised bid comes after Macy's rejected the initial offer, citing concerns over financing and valuation.

Arkhouse Management, focusing on real estate investments, alongside Brigade Capital Management, sees the buyout as an "attractive alternative solution" providing significant value and immediate liquidity to Macy's stockholders. In response, Macy's has stated that its board will thoroughly review and evaluate this latest proposal. This development occurs against a backdrop of Macy’s struggling to maintain its market position against more agile online competitors and retailers with less extensive physical presences. Additionally, Arkhouse has escalated its efforts by nominating nine director candidates to Macy’s 14-member board last month, indicating a strategic push to influence the company's direction and management.

Activist investors raise Macy’s buyout bid to USD 6.6 billion