An investor group comprising Arkhouse Management and Brigade Capital has made a US$5.8bn offer for department store business Macy’s, which could take it off the stock market.
As reported in the Wall Street Journal, the investor group submitted a proposal to buy the Macy’s stock it doesn’t already own for $21 a share on 1 December, according to a person familiar with the matter.
Real-estate investment firm Arkhouse and Brigade, a global asset manager, already own a stake in Macy’s through Arkhouse-managed funds.
The group has reportedly discussed its proposal with the chain, whose board has since met to review the offer.
As well as Macy’s department stores – including its flagship in New York’s Herald Square – the company also owns luxury department store brand Bloomingdale’s and beauty chain Bluemercury.
Macy’s has struggled in recent years amid a changing retail landscape.
In 2020, it announced the closure of 125 stores in a bid to exit weaker shopping malls and focus on smaller-format stores in strip malls.
It has further invested in the small-format model with the promise of 30 new small-format Macy’s locations across the US, beginning 2024.
Macy’s bought specialist beauty and spa services retailer Bluemercury in 2015.
This year saw Bluemercury expand its brands portfolio with the launch of its first bath, body and home fragrance line, called Cerulean 6°.