Arkhouse Management and its partner Brigade Capital Management on Dec. 1 made a $5.8 billion proposal to take department store chain Macy’s private, Arkhouse confirmed on Sunday.
Arkhouse Management, a real-estate-focused investing firm, and Brigade Capital Management, a world asset manager, submitted a proposal to amass the Macy’s stock they don’t already own for $21 a share, Arkhouse said in a press release.
The investor group sees “the potential for a meaningful increase to the unique proposal if we’re granted access to the obligatory due diligence,” it said.
Macy’s didn’t respond immediately to a Reuters request for comment.
Reuters earlier reported that an investor group led by Arkhouse had submitted a proposal to take Macy’s private for $21 per share.
The Arkhouse and Brigade Capital Management-led investor group has a “significant stake in Macy’s through Arkhouse-managed funds,” Arkhouse said.
It said the 2 firms have “engaged privately” with Macy’s regarding the deal in recent weeks.
Arkhouse and Brigade Capital submitted a proposal to amass the Macy’s stock they don’t already own for $21 a share. Reuters
“We encourage the Company to reply to us this week, because it indicated, without further delaying substantive discussions,” Arkhouse said in its statement.
Arkhouse said that investment bank Jefferies, which is acting because the buyout group’s financial adviser, “has provided a highly confident letter supporting our ability to boost the obligatory funds for the transaction.”
Macy’s last week said it’s cutting 2,350 jobs and shutting five stores at it goals to streamline operations.
The department store operator in November reported quarterly profits that crushed analysts’ estimates on lower inventories and robust demand for beauty products, signaling that attempts to trim inventory from 2022 highs were finally working.
