NEW YORK (AP) – Arkhouse Management and Brigade Capital Management are now upgrading their offer to buy Macy's in a deal worth $6.6 billion.
The investment firm announced Sunday that it has submitted an all-cash offer of $24 for each remaining Macy's share it does not already own. This is an increase from the previous offer of $21 per share.
Macy's rejected a previous deal in January that was said to be worth $5.8 billion. At the time, the retailer said its board had reviewed the investment firm's proposal and had concerns about the financial plan, as well as felt it “lacks compelling value.”
In a joint statement on Sunday, Arkhouse managing partners Gabriel Kahane and Jonathon Blackwell said they were unhappy with the Macy's board's “strategy of delay” and “continued refusal to engage.” However, he said he was still committed to completing the deal.
Kahane and Blackwell have repeatedly sought to address the company's concerns, adding that they are willing to further increase the purchase price “subject to customary due diligence.”
Macy's acknowledged Sunday that it had received a “revised, unsolicited and non-legally binding” proposal. The New York-based company said its board would consider the proposal carefully and would not comment further until the evaluation is complete.
Last month, Arkhouse moved to nominate nine people to Macy's board of directors. Macy's said at the time that it was seeking additional financing information, but instead said Arkhouse sent a letter asking for a 10-day extension to the director nomination period.
Meanwhile, Arkhouse said it had requested an extension of the deadline in hopes of providing additional funding details and continuing its private engagement. After that request was denied, the company appointed a director, Arkhouse added.
Macy's announced Tuesday that it will close 150 stores with the same names over the next three years, including 50 by the end of the year, after a fourth-quarter loss and declining sales. As part of the restructuring, the department store chain also announced it would upgrade its remaining 350 stores.
